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| lcur:local_currencies [2026/04/20 19:43] – external edit 127.0.0.1 | lcur:local_currencies [2026/04/30 10:06] (current) – Simon Grant |
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| ==== History ==== | ==== History ==== |
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| The idea of using just one national currency is quite modern. Currencies used to be much more localised, and people often used different sorts of [money](/limo/money) for different aspects of their lives. | The idea of using just one national currency is quite modern. Currencies used to be much more localised, and people often used different sorts of money for different aspects of their lives. |
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| As nation-states developed, money became more centralised, but even then, in Elizabethan times, gold and silver coins were used, with varying rates of exchange. Then during the English Civil War, the state lost control of the supply of money, and local traders stepped in to produce tokens for local goods and services. These local tokens were banned when the monarchy was restored. | As nation-states developed, money became more centralised, but even then, in Elizabethan times, gold and silver coins were used, with varying rates of exchange. Then during the English Civil War, the state lost control of the supply of money, and local traders stepped in to produce tokens for local goods and services. These local tokens were banned when the monarchy was restored. |
| Independent currencies have often been set up in reaction to economic crashes. For example, several schemes were set up in Europe during the Great Depression. Wörgl in Austria created [a local scrip currency](https://www.lietaer.com/2010/03/the-worgl-experiment/) in the early 1930s, thanks to which employment increased, infrastructure projects were built, and new businesses bloomed. It was so successful that the central bank panicked, and ’emergency currencies’ like Wörgl’s were banned. | Independent currencies have often been set up in reaction to economic crashes. For example, several schemes were set up in Europe during the Great Depression. Wörgl in Austria created [a local scrip currency](https://www.lietaer.com/2010/03/the-worgl-experiment/) in the early 1930s, thanks to which employment increased, infrastructure projects were built, and new businesses bloomed. It was so successful that the central bank panicked, and ’emergency currencies’ like Wörgl’s were banned. |
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| In the 1980s, Michael Linton came up with [Local Economy Trading Schemes (LETS)](https://en.wikipedia.org/wiki/Local_exchange_trading_system) and these took off in communities all around the world. These are in effect IOU schemes, enabling trade and exchange between community members. Like the Wörgl, these have the effect of helping those who don’t have access to mainstream money to trade goods and services. | In the 1980s, Michael Linton came up with [Local Economy Trading Schemes (LETS)](wp>Local_exchange_trading_system) and these took off in communities all around the world. These are in effect IOU schemes, enabling trade and exchange between community members. Like the Wörgl, these have the effect of helping those who don’t have access to mainstream money to trade goods and services. |
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| Timebanking schemes are similar to LETS but bring an egalitarian approach to community trade. An hour of your time is worth the same as an hour of my time, regardless of the services we’re providing. | Timebanking schemes are similar to LETS but bring an egalitarian approach to community trade. An hour of your time is worth the same as an hour of my time, regardless of the services we’re providing. |
| In the 1990s, the [Banco Palmas](https://www.institutobancopalmas.org/) was founded in Brazil. A fishing community was moved inland to enable luxury sea-front development. The people had to abandon fishing and create new enterprises. Funds were difficult to obtain, so they set up a bank and their own currency to help local people to trade. The community flourished, and though the Palmas are no longer officially in operation, the currency still circulates unofficially. | In the 1990s, the [Banco Palmas](https://www.institutobancopalmas.org/) was founded in Brazil. A fishing community was moved inland to enable luxury sea-front development. The people had to abandon fishing and create new enterprises. Funds were difficult to obtain, so they set up a bank and their own currency to help local people to trade. The community flourished, and though the Palmas are no longer officially in operation, the currency still circulates unofficially. |
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| After Argentina’s crash of 1998-2002, [many local currency schemes](https://en.wikipedia.org/wiki/Cr%C3%A9dito) appeared, with local notes holding their value compared to the state currency (which was subject to hyperinflation). | After Argentina’s crash of 1998-2002, many local currency schemes such as [[wp>Crédito]] appeared, with local notes holding their value compared to the state currency (which was subject to hyperinflation). |
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| In 2006 the [BerkShares](https://berkshares.org/) scheme was launched in Massachusetts. Their beautiful notes, featuring local celebrities like Herman Melville, are made on the same presses as federal dollars, and are issued and redeemed by local banks (which is not legal in the UK). To encourage use of BerkShares, when converting to Berkshares you get an extra 5%. And to discourage extraction, you lose 5% when converting back. | In 2006 the [BerkShares](https://berkshares.org/) scheme was launched in Massachusetts. Their beautiful notes, featuring local celebrities like Herman Melville, are made on the same presses as federal dollars, and are issued and redeemed by local banks (which is not legal in the UK). To encourage use of BerkShares, when converting to Berkshares you get an extra 5%. And to discourage extraction, you lose 5% when converting back. |