Tips to help a local currency flourish

Is your community having problems with getting your local currency to gain traction, to have a significant amount of usage?

In the USA and many countries in the West, local currencies have had a hard time staying alive. In Brazil on the other hand local currencies are flourishing and make up a significant amount of the total currency flow in that country. Why is that?

Its because in Brazil they create regular exchange fairs in their communities. People bring their used stuff to the fair. They also think of services they can offer, that they might not normally do as a paid job – e.g. dog walking, cooking a meal for someone, babysitting, cleaning someone’s garage. They can be one off services so you don’t have to build a whole business around it.

The problem with many local currencies in the US and the many countries in the West is that people do not engage in creating new services and passing around used goods because of the currency. It is the activation of that new segment of the economy that makes it so powerful. And what makes the Brazilian local currencies work.

Along this line of thinking, a new way to activate new services is to have many Local Currency Circles in your community. In a Local Currency Circle people sit in circle and express their needs or services they have to offer. Others can then help or receive with a local currency exchange. These local currency circles also activate many heretofore unused services.

The Local Currency Circles (LCC) activate more informal business, which are a complement to more established businesses using the local currency.

Usually local currencies take a bit of effort and town wide coordination to startup, but using Local Currency Circles (LCC) one can get one up and running very quickly. Simply create a currency and invite people over for one of these Circles, where people can exchange the currencies in return for helping each other with their needs. Over time the community can help grow the LCC, and then create more LCC’s. Then gradually formal business owners can be invited to these LCC’s, and then the flow of currency can happen outside the LCC’s too, in the business’s around town.

 

 

 

Related Links:

How to start a local currency

Four steps to beginning a local currency

Local currencies in Brazil

Shareable’s article on community currency

The Atlantic’s article on local currency

 

 

 

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