Replies to This Discussion

Permalink Reply by Kathy Jacobson on January 2, 2009 at 5:39am

Hello John!

Thank you for sharing this information!

I have not read the chapter you have shared as of yet but will do so soon. I will also forward it, and your note, to a cohort here who is quite focused on developing a local currency in our area.

He, Weston, has put together a background information document and a proposal for our area. I am attaching his documents, with his permission, in the hopes to get feedback from folks on this site. I am also researching and giving his proposal serious thought.

Any input will be greatly appreciated and I will forward it to others in my area. I am not sure why he and others have not joined in the fun here but it may just be a matter of timing.

Thanks for all you are doing and best wishes,

kj

Kathy Jacobson
southeast Ohio, USA

Attachments:

• WL Local_Currencies[1].doc, 45 KB
• WL Local Currencies 2 121708.doc, 50 KB

Permalink Reply by Constantine Faller on February 4, 2009 at 5:03pm

Have you seen any situations where the currency is created created by different businesses? Tradable or transferable "gift" certificates are a simple example of this. This would inherently create different 'currencies' and probably in our case, with fiat model $US equivalent value based. Would you see this as absolutely unworkable, or having some potential in its anarchistic self governance.
The reason I ask, I could perform service to ten different businesses, invoice them in $US to cover my cost, and invoice them in gift certificates for my time. It eliminates me having to monitor all of the currencies in circulation, except for tracking it in and out of our business.
The reason I got on here today was to ask if anyone had experience with "refund on demand" with certificates, in our case, in $US. (Which might necessitate in this case an agreement that I, the original recipient, can present these certificates to said business for cash at any time.
So I was wondering if other models allowed "refund" or exchange, even possibly at an exchange rate that amounts to a loss to one side or the other.??
Posting also to THE RESILIENT COMMUNITY: SCRIP and to Introductions and Experiences with Local Currencies
Constantine

Permalink Reply by John Rogers on February 8, 2009 at 7:26am

Hi Constantine

Past examples of tradable 'gift' certificates include Burlington Bread and Deli Dollars. Not sure what you mean by 'anarchistic self-governance'. I am convinced from worldwide experience of organisers that some level of robust collective governance is *essential* to create sustainable systems. It is too easy to get woolly about trust until things break down - that is when you need good governance to mediate disputes and improve trading rules or currency architecture. By all means devolve as much self-governance as possible to the responsibility of individual users but do also plan for collective governance.

Other examples of business-issued local currency include Michael Linton's 'Community Way' but it is not clear in practice whether any actual systems have succeeded or are still active, you need to ask him. His system uses a 'mutual credit' mechanism rather than fiat issued certificates.

Best wishes

John Rogers

Permalink Reply by Constantine Faller on February 8, 2009 at 10:25am

OK, possibly not self-governance, but in that the businesses issue the (their own) certificates, it inherently creates different certificate for/from each business (valued in dollars US) and does not seem to leave anything for a central body to do. It seems on the surface to be a positive emphasis placed on the health of one's local businesses. It requires that the businesses permit transfer amongst the community, and also people who are willing to place enough value on them to use for trade/exchange.
Constantine

Permalink Reply by John Rogers on July 9, 2009 at 11:02am

Continuing to develop resources to support the emergence of sustainable local currency systems, I have posted a much simpler *design methodology* (only 5 pages instead of 40!) at my website to get new systems started. It starts with a set of very simple questions to establish purpose etc.: www.valueforpeople.co.uk

Once you have got a group together to answer these questions and posted your answers at the website to demonstrate your seriousness of intent, you may qualify for a FREE consulting hour.

Look forward to supporting you to make the first steps!

John Rogers
Value for People
www.valueforpeople.co.uk

Permalink Reply by John Rogers on July 28, 2009 at 8:18am

I would like to hear from anyone who has used the design methodology.

Please tell me what was useful or helpful and what was less useful or could be improved.

I am writing a new draft of the Community Currency Design Manual and all feedback will be helpful to improve it.

Contact me through my website: www.valueforpeople.co.uk

Thanks

John Rogers

Permalink Reply by Mark Maggiora on November 27, 2009 at 1:31pm

John and others

Thank you all for your contributions. We are exploring the establishment of a local-based community exchanges system in Vancouver, WA associated with a grassroots-based initiative titled the 4th Plain Corridor Revitalization Task Force.

This looks to be valuable information in helping to guide our endeavors. We are working closely with the Portland Community Exchange Network and Thomas Greco in designing the model and initiating implementation through modeling the application in a very localized International Faire this coming summer. We are seeking to weave a local community bank into the process as a means of expanding their value proposition--a broker of value exchange as opposed to simply $'s--and to faciliate the interchange between the local-based exchange system and the global marketplace.

I welcome the dialogue and exploration of things that have worked and not in crafting our framework.

Mark

Permalink Reply by John Rogers on November 28, 2009 at 5:35am

Hi Mark

Good to hear of your endeavours and good that you have Tom Greco advising you.

All I would emphasise from what I have written elsewhere is to remember that a currency design process begins with a community development process. The technical currency design process grows out of the community development process and then they run in parallel. You need to have your potential stakeholders on board from day one to lessen the need for marketing efforts later on. And don't forget the importance of getting your governance right. Too many systems fail over disputes about power and ideology.

All the very best with your efforts

John

PS I will be running an internet based currency design course in 2010. Look out here and at my website for notificiations: www.valueforpeople.co.uk

Permalink Reply by Mark Maggiora on November 30, 2009 at 12:07pm

Thank you for the feedback, John.

Would you recommend any communities in the US Pacific NW who may be a good group to collaborate with in regards to the processes you've specified? I'd like to tap into their lessons learned as well. I thought you may have engaged with some following your presentation as last year's Seattle unMoney Convergence event.

I look forward to your Currency Design Course next year.

Permalink Reply by John Rogers on December 1, 2009 at 3:00pm

Hi Mark

You might want to check out Fourth Corner Exchange in US Pacific NW here: http://www.fourthcornerexchange.com/

I have no direct contact with them but I am sure they will be willing to share their experiences with you.

Actually, it has been difficult to establish contacts with people around community currencies. Very few seem willing to learn from decades of worldwide experience. Too many rush in with admirable enthusiasm and idealism and then come crashing to the ground because they have not considered some basics. That is why I am doing what I am doing.

Good luck.

Permalink Reply by James Martin on December 16, 2009 at 10:45am

Please forgive me if this question is already addressed above. I just don't have time at the moment to read all of the above posts.

I know ever so little about local currencies. I see that many of the new local currencies in England maintain the convenience of a local pound for a national pound. Some schemes over here in the US use "hours" instead of the national monetary units. There are clear advantages to either -- and others (which I know little about). But what concerns me here is the possibility of a collapse of the dollar due to inflation, etc.... Would local "dollars" retain resistance to inflation or value-loss in the event of an ecomomic meltdown?

Permalink Reply by John Rogers on December 16, 2009 at 2:33pm

Hi James

Good question, many answers.

Two main types of community currency:
those that grow community
those that grow economy.
You can do both at the same time but most systems tend to have a main focus on one or the other.
LETS and time banks tend to be focussed on growing community
Community Way, Berkshares, Transition Towns currencies and German Regiogeld systems tend to be focussed on supporting local businesses.

Two main types of issuance mechanism:
mutual credit - each trader issues currency when they trade and all accounts balance to zero - Community Way, LETS and time banks use this mechanism
local fiat - Ithaca HOURS, Berkshares, Transition and Regiogeld currencies mostly issue a currency backed by national currency with which people buy the local currency.

Two main CC types by location:
(1) Local community or region
(2) Internet based.

Two things that give the local dollar its value:
(1) Peoples' belief in it based on
(2) Backing by real assets, goods, services, trust, reputation etc.

Backing by national currency may be a good short term strategy to build up the confidence of the business community but ultimately resilient, sustainable communities are going to need 'real' community currencies that maintain their own value because of local confidence in their ability to get work done and maintain economic and social flows.

Hope that helps

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