There is a phenomenon where a town or a community put up their own homegrown currency to promote local spending and keep their area safe from economic crisis.
This is not necessarily a new thing, but with the widespread economic downturn, this is gaining popularity once more, especially in hipster communities in America, lively UK communities, and some small towns in Germany.
Experts believe that this phenomenon can stimulate better local business networks. Some of these new currencies are even shifting from papers to electronic payments via cell phones or the Internet.
The rules and regulations governing this currency model vary from each country. But there is actually nothing that can stop you from putting up your own currency, as long as someone else agrees with you and accepts it. But to make it a legitimate medium for financial transactions, there are a lot of things you must do.
Here are some of the main things you must do if you plan to put up your own currency:
- Have a good enough reason for doing it. You can do it to support the local and independent market. It can also help low-income earners and those in isolated locations. Have a strong reason for a long lasting and stable currency.
- Form a core group. You must surround yourself with key people who have the same vision and are energetic enough to push through with the plan.
- Get Local Support. Encourage the local business to support you in your endeavour and include them in your scheme, so that they will feel like they are part of the team.
- Be serious, but enjoy. You must be enthusiastic enough to easily build rapport among businesses and the community. But you must be serious enough for them to believe you.
- Have a Local Design Competition. Run a design competition in your community to come up with how your new currency will look like.
- Raise the necessary money. Crowdfunding, letting stakeholders invest and even asking for the support of the local authorities can help you raise the money needed to print and market the new currency.
- You should be the first to use the money. You have to go out there and be the first to keep on using the money until it gains circulation.