Local currencies (what are they, and how can they help?)

Canada’s Salt Spring Island has a successful local currency. Kate Brazier

Local currencies are not so common these days in England. There used to be ones in Totnes, Lewes, Brixton, Exeter and Hebden Bridge. But all seem to have folded. It’s a shame, as they are actually really good ideas. And it’s not because it’s an idea ‘whose time has passed’. Because many thrive elsewhere in the world.

What are local currencies?

They kind of work like gift vouchers. The notes are printed on beautiful paper (usually with images from local artists) and have the same security watermarks.

Then you ‘buy them’ from local shops with sterling, and get your ‘notes’ to spend at local shops. They work a bit like gift vouchers, in that you give the shopkeeper the notes, then get your change back in sterling.

As each one put into the economy takes on out from sterling, local currencies don’t negatively affect inflation.

Why choose local currencies?

The reason behind them is simple – to support independent shops. The ones that worked before were only allowed to be used for small businesses (including services). That way you can only use them to keep money circulating in communities, not in big supermarkets. They also ‘build community spirit’, and are quite empowering.

This has a positive knock-on environmental impact. Because if people spend money at local indie shops, this means supporting local farmers and reduce road traffic (around 25% of which is from lorries thundering goods from central distribution houses to big supermarkets).

Salt Spring Dollars (a Canadian local currency)

Salt Spring Dollars is one of the world’s most successful local currencies, with the beautiful notes supporting local independent shops on a gorgeous Canadian island.

The notes have been used since 2001 and are accepted by many merchants in British Columbia including all three grocery stores on the island, the local hardware store and many more. Each bill features a local historical pioneer plus local art, and the security features include embedded holograms on higher denomination bills and unique serial numbers.