Local Community Currencies

Among various crypto initiatives, Intercoin is unique in that we focus on serving communities. Money is a community phenomenon, benefitting from network effects similar to social networks, languages, and culture. The value of money to any particular user is whether others will accept it in exchange for goods and services they require. The more widely a currency is accepted in a given community, it is useful it is as money.

Intercoin was launched with the idea of helping organizations, large and small, issue their own community currency. Just as casinos have launched their own chips, and theme parks have launched their own tokens, so have entire cities. The goal is to help money stay in the local economy, and encourage people to buy locally.

Bristol Pound

Berkshares

At times in history, local currencies helped stabilize economics in communities amid rapid hyperinflation, such as the Wara in Germany and the later miracle of Worgl in Austria that helped safeguard the economy of local towns in the midst of the Great Depression. Had these experiments not been shut down by national authorities, perhaps other communities could have experienced economic stability and the Nazi regime would have never risen to power.

Currencies don’t necessarily have to be issued by banks or political entities. They can take the form of credit money issued by local utilities, businesses and other merchants. Here is a great overview:

"Currencies don’t necessarily have to be issued by banks or political entities. They can take the form of credit money issued by local utilities, businesses and other merchants. "
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Pretty much. Currencies are just paper IOUs. You present the paper and the other person pays you back a thing. Money is just a special type of IOU where a bunch of people collectively agree to accept it.

Right, money is just any very liquid asset in a given economy.

If 30% of people are using a utility company, then they would accept payment its credits (IOUs). Because they are easy to liquidate.

But a coin that is accepted at many local businesses will have even more liquidity, since people know they can spend it on local goods and services.

If each merchant issues their own credits, this coin can be considered simply a bridge currency between the credits on some local exchange. So that there is full liquidity between any pairs or credits.

Think gift cards being exchanged for cash on gift card exchanges, except the town’s currency plays the role of cash.

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Also certain types of gift cards are better than others haha. Visa giftcard would be the most liquid, then Amazon giftcards, then a big retailer like Target, then lastly local restaurants or boutiques.