Complementary currencies are alternative forms of money that function alongside a nation's official currency, designed to address specific economic, social, or environmental needs within a community. These currencies are typically created and managed by local organizations, such as community groups, non-profit organizations, or local governments, and are intended to promote local economic development, encourage sustainable practices, and foster social cohesion. Complementary currencies often have a limited geographical scope and are not legal tender, but they can be used to purchase goods and services within a specific network of participating businesses and individuals. The value of these currencies is usually pegged to the national currency or backed by a specific commodity or service. Complementary currencies can take various forms, such as physical notes, digital tokens, or time-based credits, and they often incorporate principles of mutual credit, demurrage, or interest-free lending to encourage circulation and discourage hoarding. By providing a means of exchange that is distinct from the national currency, complementary currencies aim to create more resilient and inclusive local economies, support small businesses, and promote community engagement and collaboration.
local exchange trading systems, time banks, community currencies, mutual credit systems, local economic development, sustainable practices, social cohesion, alternative financial systems
CITATION : "Robert Anderson. 'Complementary Currencies.' Design+Encyclopedia. https://design-encyclopedia.com/?E=431575 (Accessed on December 21, 2024)"
We have 179.832 Topics and 428.518 Entries and Complementary Currencies has 1 entries on Design+Encyclopedia. Design+Encyclopedia is a free encyclopedia, written collaboratively by designers, creators, artists, innovators and architects. Become a contributor and expand our knowledge on Complementary Currencies today.