Social Currencies - Global Ecovillage Network

Description of Challenge

The international system of currencies deliberately hinders the development of local economies,
making it difficult to increase trade and exchange between different members of the same
community. That same system creates a sense of an economy that is separate from the idea of
working for people and helping them to satisfy their needs. The projects and communities that do
aim to be ecologically and socially sustainable and resilient must also face the challenge of being
economically viable.

“The first step for any community aiming to become more selfreliant is therefore to establish its
own currency system”
Richard Douthwaite

Solution

Social currency is used as a tool to develop the local and solidarity economy in an area. It helps to
generate exchanges between individuals possible where a lack of “official currency” is a limiting
factor. Social currency is created and destroyed based on real economic activity that occurs
between entities and individuals. It is a local currency, which produces no interest and no
motivation to accumulate it. This eliminates the possibility of speculation with it and this helps to
facilitate local trade. Some of the social currencies base some of their operation on bonuses given
to consumers with every purchase. These bonuses aim to broaden the impact of the solidarity
economy and develop extensive networks that can operate with a currency that gives proper
consideration to social and ecological criteria.

References:
http://ccmag.net/
http://www.gmlets.unet.com/
http://cooperativa.cat/en/economicsystem/socialcurrency2/
http://en.wikipedia.org/wiki/Social_currency
https://madrid.mercadosocial.net/monedafaq.php#2

Submitted by Altekio