The Many Benefits of Starting Local Currencies
Local currencies have a quiet charm. They help people connect in their communities and bring life to small businesses. These special notes or tokens might seem old-fashioned to some, but the benefits are real, lasting, and often surprising.
Local money brings people closer and gives towns and cities a sense of pride. If you’re interested in what makes a community flourish or just want to support your high street, it’s worth learning what makes local currencies tick.
Projects like the Lewes pound show how local currency can keep wealth moving locally, and spark new pride in a community’s businesses.
Conventional bank notes in the UK are made from a combination of plastic and animal fats, which is why many people now prefer to use cards to pay for things.
And for those obsessed with the national economy and international trade, we like this piece of writing from Paul Kingsnorth, on why many of us are not fans of the EU:
The EU violates just about every green principle going: It is the opposite of local: it is destructive to the natural world; it wipes out cultural distinctiveness; it is anti-democratic; it puts the interests of banks and corporations before the interests of its working people.
Why – when – how – did the green movement abandon its commitment to localism and democracy, and jump into bed with a beast like this? Paul Kingsnorth
Here’s a closer look at the many benefits that local currencies offer.
Boosts Local Economies
A local currency keeps money moving nearby. When people spend local notes, shops and services in the area get busier. This cycle repeats, helping keep businesses strong and creating more jobs.
Studies show that when you use local money, more cash stays close to home compared to what happens with national currencies. This extra support helps small firms survive tough times and grow over the long run.
Supports Local Businesses
Independent shops and family-run firms often struggle against huge chains. Local currencies are a tool for helping them compete. When shoppers are encouraged to spend local money, they’re more likely to visit nearby outlets instead of large supermarkets or online giants.
This gives small traders a fair shake, helping to keep corner shops, local cafés and market stalls open and busy. Over time, everyone benefits from the extra variety these businesses offer.
Builds Community Spirit
Using a local currency helps people feel connected to their area. There’s a real sense of teamwork when you know your money supports neighbours and friends.
Community events, farmer’s markets and festivals often use local tokens to spark interest and draw crowds. This brings people together, promotes trust, and reminds everyone that looking out for each other pays off.
Reduces Environmental Impact
When money stays close to home, goods and services don’t travel as far. This cuts down on transport emissions and reduces the carbon footprint linked to shopping.
Supporting local farms and artisans means fewer trucks on the road, less packaging waste, and more fresh produce. Local currencies encourage greener habits, which means a cleaner, healthier place to live.
Encourages Ethical Spending
Community money can have clear values. Local currencies often come with a pledge to back fair trade, support living wages, or only work with eco-friendly firms.
When you buy with local notes, you often know that your cash backs companies that treat people well and care for the planet. It’s shopping with a conscience, made simple.
Adds Diversity and Resilience
A local currency is another way to keep trade going when the national economy wobbles. If national banks go through a crisis or cash becomes tight, local notes can keep local shops running.
This extra system makes communities safer and more adaptable during tough times. It’s a safety net that helps the area recover faster and stand tall, no matter what’s happening elsewhere.
Attracts Tourism
Visitors are often curious about local quirks, and a town’s own money is a real conversation starter. Special notes or tokens can make shopping and dining more fun for tourists. These unique bits of paper or plastic often become souvenirs.
By offering something different, local currencies help bring in guests who spend money and spread the word about their trip.
Sparks Local Innovation
Creative thinking often comes from trying new ways of doing things. Local currencies can be used for reward schemes, charity donations, or green energy projects.
They give communities a chance to experiment, find better solutions, and learn from small wins or setbacks. This culture of trying new ideas helps places grow in their own way, rather than copying what works elsewhere.
Strengthens Local Identity
A home-grown currency often reflects local history, famous faces or landmarks. People feel proud to use it, and it can become a symbol of what makes a place special.
This sense of belonging encourages people to invest time and energy in their area. Pride in your town or city can lead to cleaner streets, better public spaces, and more cheerful neighbours.
Makes Money More Accessible
Some people don’t use banks or credit cards. Local currencies can help, especially when they come as paper notes, tokens or simple apps.
They provide an easy way for everyone to take part in the local economy, even those who avoid big banks or live without a regular account. This opens doors for people who might be left out, making sure everyone has a place at the table.
