Jeff and the Squirrel sells lovely eco stickers for small shops (also sold on Etsy)
Local currencies work a bit like gift vouchers. Beautifully designed with security features (and often the notes feature local artists), you buy local currencies from banks or shops, then spend them in local independent shops. Then receive your change in pounds sterling.
Because for every sterling pound taken out of the economy – another local pound is put back in, local currencies don’t affect inflation. They are a great way to support independent shops, as big supermarkets and chain shops are not allowed to be involved.
Local Currencies in England
There were actually a few more local currencies a few years ago, but some have folded. The most successful was Bristol Pound (followed by Exeter Pound) but these no longer exist. Neither do Totnes Pounds or Stroud pounds.
However, still going strong are Lewes Pound and Brixton Pounds (you can pay at local markets with their Pay by Text feature). These both produce beautiful notes which (unlike pounds sterling) are not printed on plastic notes made with animal fat.
History of Local Currencies
You’d be surprised! Local currencies go back to the creation of ‘bead money’ in Papua New Guinea. And even the Lewes Pound was relaunched, after a gap of a few hundred years.
In the 1930, Germany’s Wörgl currency was introduced to combat unemployment and stimulate the local economy. It was a success, showing how local currencies can drive growth. Local currencies are far more used there, than here.
Successful Local Currencies Abroad
Critics (like the Bank of England and those supporting national currency) say that local currencies have had their day. Not so, because they are thriving abroad:
Germany’s Chiemgauer Currency encourages spending at local shops. Residents exchange Euros for Chiemgauer, which can only be spent at participating independent business. Each note carries a small percentage that is deducted if not spent within a year, to this encourages circulation.
This currency proves how a local pound can stimulate local economies. Local currencies are never sold like national currencies (sold as ‘gifts’ to be displayed in boxes). If they don’t get used, there is no point to local currencies – so they are made inactive if they are not spent.
This is not to encourage consumerism. Rather to encourage people to use local currencies to spend say at local farmers’ markets and an independent bookshop.
Canada’s Calgary Dollars can only be spent locally, so you can’t exchange these, and then go shopping online at Argos or Amazon. These kind of work like loyalty cards for independent shops, and residents can also part-pay their housing rent in Calgary dollars.
