How can we create digital local currencies that will stand the test of time?
Cryptocurrencies and blockchain are often touted as solutions for supporting financial inclusion, while local currencies are already used to support economies at local level. Combined, they seem like an ideal solution. But to be sustainable, digital community currencies need to be more accessible and cost-effective than paper-based local currencies.
Local currencies evolved as a way to keep value circulating within a community. A network of local businesses and services agrees to accept the local currency as a replacement for cash. The idea is to create a micro-economy where less of the money spent leaks out thereby creating a local multiplier effect.
