Complementary currency
Complementary currency is a hypernym (superordinate) of local currency (also referred to as community currency) and sectoral currency.
Complementary currencies describe a wide group of currencies or scrips designed to be used in combination with standard currencies or other complementary currencies. They can be valued and exchanged in relationship to national currencies but also function as media of exchange on their own. Complementary currencies lie outside the nationally defined legal realm of Legal tender and are not used as such. Rate of exchange, scope of circulation and use in combination with other currencies differs greatly between complementary currency systems, as is the case with national currency systems.
Some complementary currencies incorporate value scales based on time or the backing of real resources (gold, oil, services, etc). A Time-based currency is valued by the time required to perform a service in hours, notwithstanding the potential market value of the service.
Some complementary currencies take advantage of demurrage fees, an intentional devaluation of the currency over time, like negative interest. This stimulates market exchanges in the devaluating currency, propagates new participation in the currency system and forces the storage of wealth (hoarding) ability usually reserved for currency into more permanent and better value holding tools like (property, improvement, education, technology, health, etc) all of which are sheltered from the currency based demurrage fees.
Other experimental complementary currencies use high interest fees to promote heavy competition between participants, and the removal of wealth from long term wealth holding structures (natural/material wealth, property, etc) to aid in the process of rapid industriaization, mass production, automation and competitive innovation.
Monetary speculation and gambling are usually outside the design parameters of complementary currencies. Complementary currencies are often intentionally restricted in their regional spread, time of validity or sector of use and may require a membership of participating individuals or points of acceptance.
See also
- Alternative currency
- Bernard Lietaer
- Calgary Dollars
- Chiemgauer
- Digital gold currency
- Private currency
- Silvio Gesell
- Terra
- WIR Bank
External links
- Appropriate Economics Local Exchange Systems in Africa, Asia, and Latin America
- ccSyndicator Collaborative IT Committee for Complementary Currencies
- Complementary Currency Database Online Database of Complementary Currencies Worldwide
- Complementary Currency Resource Center Resource Center for Complementary Currencies
- Local and Interest-Free or Alternative Currencies, Social Credit and Microcredit Detailed Links to more Complementary Currency Sites
- Living Economies Complementary Currency Resources and Link Directory
- SANE Community Exchange System International Complementary Currency system
- Systemfehler.de Digital Library of Complementary Currency and Alternative Economics Literature
- transaction.net Simple and clear explanations of various Complementary currencies
- Yootles A complementary currency being developed at Yahoo!
- Multilingual Complementary Currency Library
- Value For People Community Currency, Time Banking and Co-Production specialists
Complementary, local exchange software and systems design
- Cyclos Web based complementary currency system build on Java technologies
- Community Exchange System Global complementary currency system
- Fourth Corner Exchange php web based system
Examples of complementary currencies currently circulating
- Worldwide Database of Complementary Currency Systems
- [1]
- Amsterdam Noppes
- The Outer Courtyard
- Community Exchange System International
- Chiemgauer
- Sterntaler
- Rheingold Regio
- Slovakia LETS
- Göteborg LETS
- Falmouth LETS
- New Moray LETS
- LETS in Cornwall & the SW of the UK
- Sel de terre system France
- Golden Bay HANDS New Zealand
- Here Now Korea
- Mexico
- North Carolina Plenty
- Swiss WIR