Very interesting trendsas banks fail people within France. Alt local notes: Start at 2:10 min into vid. [youtube]http://www.youtube.com/watch?v=umC-P8eLyu4[/youtube]
Surprised this is the first I've heard of it, have a good few friends who reside in France. Interesting that those alternatives aren't backed by anything other than a growing lack of faith in the official currency. Euro looks more and more likely it's about to tank any day now
Germany has quite a few local currencies and I have been hearing about France and Greece recently as well as Italy. In the past they have been about a shortage of legal tender (India has run out of small change and shop keepers are giving out sweets instead) or shop local/anti-big business such as the Transition Towns. Pretty much all of them are unbacked (except the Liberty Dollar). We nearly had one up and running in Queensland, the Baroon Dollar, I went to the launch party but it never had the support of the local businesses so it never took off. There are lots of them around, mostly in America but the UK has several that have been running for a few years now. ( Just another one of my collecting hobbies )
There are a few schemes running in the UK here's a Bristol 5 note http://i0.wp.com/bristolculture.files.wordpress.com/2012/06/bristol-pound-note-c2a35.jpg
Pretty sure it is illegal to issue private notes in Australia. Would need to rummage through the currency act again.
So if they are unbacked, what is the point? Not trying to be negative here, but at least there is some backing to any type of national fiat currency (even if its low) as well as a lower chance of forgery/fakes (well stronger laws against it anyway) and global recognition (which is useful if you want to buy something for outside your little town). I can see its use as a political point, but beyond that, i dont get it. Jislizard, what was reasoning behind the qld push?
That's the key to currencies, it's either got to have support ie consumers trust and use it or it has to be forced onto consumers eg legal tender.
same as swiss wir http://en.wikipedia.org/wiki/WIR_Bank speaking to people in business they dont like it as it creates more paperwork and they are not allowed to refuse accepting it.
Private currencies are backed by faith that consumers have in businesses that have demonstrated trustworthiness. It doesn't have to be gold or silver, countless economic transactions with a myriad of individuals is enough. Realistically, this can take years though.
I remember a youtube clip about the some small Irish communities (Hamlets & Villages) accepting the old (Pre-Euro) Irish Punts. Officially they were just used as 'Novelty Coupons' however they were traded the same as currency within these communities and injected some much needed liquidity mearly as a medium of exchange.
It's been at least 5 years since it looks like that. Now they're VERY QUIET about it. They're just gaining time. It will go bust.
Interesting topic. I couldn't see anything that would prevent private notes that do not purport to be legal tender, or advertise a dollar value. http://www.austlii.edu.au/au/legis/cth/consol_act/ca1965120/
Along similar lines: Alternative currencies come in various forms. Some companies have their own reward points, gift cards or casino tokens that are currencies.
Europe is full of alternative currencies. Lots and lots of regional currencies. Hungary western city of Sopron has the "kkfrank" regional currency, whose name derives from a locally-grown grape (the area is famous for its wines). Another source: http://www.realdeal.hu/20100420/and-they-say-the-forint-is-a-dodgy-currency/ The Hungarian forint is too tightly linked to the euro and therefore, it's very vulnerable. So locals thought out the "kkfrank". In translation it means "blue frank". That grape's name, as mentioned higher... I also came across negative remarks from the Hungarian National Bank, which obviously doesn't like the new currency, as it could "undermine" the forint's power. This is how the banknotes look like: One of the kkfrank banknotes has Franz Liszt on it: Kkfrank notes on the left and the forint notes (issued by the National Bank) on the right:
Noticed this one today: American local currency BerkShares. [youtube]http://www.youtube.com/watch?v=346m1Kv3vmg[/youtube]
Sorry, missed the thread! OK, firstly, other than the Liberty Dollar and the AOCS who are trying to replace the American Dollar by using specie, no other currency really calls it self an 'alternative' currency. Most go with 'community', 'complementry', 'local' or something like that. They are not replacing legal tender they are working alongside it. In many cases you get a discount when you buy them, usually 5-10%, so there is a bit of an incentive to use them. Money taken from the exchange of legal tender is often ploughed back into the local community or used as micro loans for local small business start-ups. Collector packs are also sold and this goes towards admin and other community projects. They are often given out to charity workers or people on a low income as part payment for services and part of the local support network. Buisnesses will often use them to get a 'loan' from their customers, e.g. 'Deli Dollars'. The company was doing well and looking to expand but the cost of a bank loan was putting them off. So they printed off Deli Dollars, redeemable only after the shop had expanded, their customers bought them and the money went into the expansion. When they were finished the customers used the Deli Dollars to buy coffees and sandwiches in the new shop (at a discount). They actually put a fair bit of effort into their notes, they are always professionally printed, not desktop published. the Ithaca Hours used rag paper and thermal inks which darkened if you tried to photocopy them, the Liberty Dollar used microprinting around the edges which was hard for the resolution of some cheaper printers, The Salt Spring Dollars need a special viewer to see some of the security features and this can be bought by the users. Plus most people really can't be bothered to photocopy a $1 local currency. However recently in a bit of a cash grab against the collectors some groups have been releasing $100 notes, they are probably worth faking. The whole idea of the complementry currency is something along the lines of... I go to a big box multi-national store and buy a gadget, or I go to Woolworths and buy a salad. The money I spend goes to the head office, which might be overseas. I now have a salad and the money has left the community, never to be seen again. (Simplified version) Say I have a 'local dollar' I can't put it in the bank so I might as well spend it, I can't shop at Woolies so I go to the local deli, and I buy a salad. The salad was probably sourced locally rather than flown in from South America. The owner of the Deli then buys his supplies from a local farmer and pays for it in the 'Local Dollar'. The farmer pays his staff partly in the local dollar. The local staff, not wanting to end up with a ton of local currency buys a salad at the local deli etc. In reality, it attracts lots of fringe businesses, such as reiki healing and massages and aura cleansing etc. basically the people who have a sense of community over a sense of buisness. But no one wants to use them so the money tends to concentrate towards popular local businesses, such as coffee shops. Who get sick of it, the majority of customers won't accept them in change and there is usually a small fee associated with exchanging back to legal tender. The QLD Baroon Dollar was an attempt to lure the local population away from the unpopular Woolworths which had just opened against local protest. The idea was to support the local businesses and not woolies. The local businesses were a bit sceptical but it has been tried in other places with limited sucess, Noosa had a go http://www.noosanews.com.au/news/hastings-street-to-share-the-wealth-money/584123/ but it was just a short term tourist attraction. Disney have had a sustained program with their Disney Dollars http://en.wikipedia.org/wiki/Disney_dollar As the local money cannot be banked it changes hands very quickly, called the 'velocity'. High velocity is good for local businesses as it keeps the wheels of commerce spinning. It is not unprecedented of course, look at the Westfield Gift Cards, a form of corporate scrip, you spend your $100, get a Westfields Gift Card for $100 but it is no longer legal tender and it can only be spent at a Westfields. I had a book voucher which I never got around to using, the company went broke and refused to honour them, I think they offered half the value and then they dissapeared. Same thing happens with the local currency projects, some are only designed to last a short while but others have proven over and over again that you have to keep pushing them, getting new businesses and expanding the customer base otherwise they eventually collapse. And of course they are bad for tax collection, if you pay for an item using community currency it is very hard for the government to take their percentage. There are so many different types, names etc. that very few operate in the same manner for the same reasons. Some have demurrage so you actually have to put a bit of extra money into them to keep using them, some have best before dates and some just seem like a good idea but never get off the ground, some have been shut down by their governments but most just die a slow death.
Governments can shutdown whatever, but people can use anything that others accept, as payment, with government having little to none but rude / open / suppressive means to punish it, much like the nazi's and some other approaches. So your last point bad for tax collection, is actually the primary point. Also, in the very end, inflationbased theft along a legal tender currency is just the same as taxing, so it's no wonder that alternative currencies address both.
