8 Models of Community Currencies

LIVING ECONOMIES has come up with 8 different models of community currencies suitable for New Zealand. Some of these models can be found in operation in other parts of the world. Others are based on some combination of working models from other places and/or other times. The models are:

1. a fully backed redeemable voucher system
2. an interest free non backed fiat currency
3. a 100 percent redeemable tourist dollar
4. a rates credit based voucher system
5. youth scrip
6. time dollars
7. a commodity backed voucher system
8. a local authority backed integrated community currency transformation model

A 9th model would be LETS, which is the only community currency operating in New Zealand, introduced in 1989. Recently, the LETS model is being developed in the light of Transition Town initiatives. Here is a TransitionDollar concept, that builds and extends the simple mutual credit system.

Here is a short descripton of some of those models:

1. A fully backed redeemable voucher system

Based on an Australian model, this system created loyalty vouchers in a local area that could be purchased with an incentive and then used in local shops and with local trades people. A form of circulation incentive was used in the early years by way of a disincentive to redeem the vouchers. The Australian model is no longer in use, but many more democratic forms of this kind system are being developed (Germany,
see www.monneta.org.

3. A 100 percent redeemable tourist $

This was instigated in 2000 on the Chatham Islands but fell foul of the Reserve Bank and was a private scheme supported by locals. The model for our suggested version is that now running on Saltspring Island, one of the larger Gulf Islands off Vancouver, British Columbia. You can also check out the website for Saltspring dollars.

5. Youth scrip

Tom Greco covers this idea of providing young under-employed people with a script that can be redeemed through participating retailers in his latest book 'Money - Understanding and Creating Alternatives to Legal Tender' A copy of his relevant chapter is available here.

6. Time dollars

We are looking at several versions of this tried and tested approach, the The Commonweal Service Dollar of Minneapolis, Minnesota, USA, the Japanese Healthcare scheme and others.

8. A local authority backed integrated community currency transformation model.

This proposal is being developed in detail by Lowell Manning and incorporates community currencies with rates credit, local taxation reform and a universal basic income. Read about it here.

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A Gallery of Community Currencies

Here is a small collection of examples of Community Currencies

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Additional Models of Community Currencies

There is a range of community currencies that are possible, but may not be appropriate for the current New Zealand context:

- An Emergency Relief community currency, as proposed by John Rogers for the rehabilitation of tsunami victimes in Sri Lanka, 2004/05