EXPAND YOUR HORIZONS
Are you a community leader, NGO representative, or local government official interested in what a local currency may have to offer in your region? Encointer is particularly useful in areas that are economically deprived or underdeveloped. Here are some of the ways Encointer can lift up your community.
The famous “Wörgl experiment” in 1932 showed the transformative potential of a community currency to pull a town out of economic depression. In fact, unemployment in Wörgl dropped 25% (while still climbing in the rest of Austria). Money that is spent with locally owned businesses – as a local currency must be – stays in local circulation and delivers a higher economic return for the community.
Seasonal fluctuations in money supply can hold communities back – especially in regions which rely heavily on tourism, or the supply of a specific crop, for instance. When that’s the case, a seasonal liquidity drought can cause shortfalls in income, spending and savings. Studies suggest that local community currencies like Encointer can have a balancing effect by injecting liquidity into the economy to bridge the dry period.
Money supply of Encointer communities is bound to the size of the population using it. As long as local businesses keep accepting the community currency, it will retain its value in a circular economy.
Social trust plays an essential role in stimulating economic development, especially in less developed communities. Voluntary community currencies like Encointer could form the basis for a web of trusted economic interactions.
Want to use a local community currency to achieve positive developmental outcomes?
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