In economics , a local currency is a currency that can be spent in a particular geographical locality at participating organisations. A regional currency is a form of local currency encompassing a larger geographical area, while a community currency might be local or be used for exchange within an online community . A local currency acts as a complementary currency to a national currency, rather than replacing it, and aims to encourage spending within a local community, especially with locally owned businesses. Such currencies may not be backed by a national government nor be legal tender . About 300 complementary currencies, including local currencies, are listed in the Complementary Currency Resource Center worldwide database.
8-517: The Lewes pound is a local currency in use in the town of Lewes, East Sussex . Inspired by the Totnes pound and BerkShare , the currency was introduced with the blessing of the town council in September 2008 by Transition Town Lewes as a community response to the challenges of climate change and peak oil . Lewes first introduced its own currency in 1789, but this was discontinued in 1895 along with
16-484: A number of other local currencies. Its reintroduction in September 2008 achieved national media coverage. On 3 July 2009, it was announced that the scheme was to be extended and that new notes of £5, £10 and £21 denominations would be issued. The £21 note emphasises the fact that five pence of each Lewes pound bought goes to the local charity the Live Lewes Fund. As of 2017, notes in circulation are: A special issue
24-789: A quotation of his: "We have it in our power to build the world anew". On the back is a picture of Lewes Castle . The notes are printed on traditional banknote paper and have a number of security features including unique numbering, watermarks and heat marks. The Lewes pound and the Transition Towns movement have received criticism for a failure to address the needs of the wider Lewes population, especially lower socio-economic groups . Such local currency initiatives have been more widely criticised in light of limited success in stimulating new spending in local economies and as an unrealistic strategy to reduce carbon emissions. Local currency Some definitions: Local currencies aim at using money as
32-664: A tool to achieve social or environmental objectives. According to the New Economics Foundation partner Community Currencies in Action: ... money is simply a social technology and the ways in which it is designed, produced and controlled – far from being neutral or predetermined factors – all influence the effects it has upon society at large. Some of the purposes for community currencies identified by Community Currencies in Action include: The Wörgl experiment illustrates some of
40-578: The Lewes Pound CIC to start selling collectors packs of LPs to help fund its operations. Comment from the Lewes Pound CIC - "Despite claims to the contrary in The Times, it is clear that a so-called tourist attraction does bring more visitors into Lewes, who do then spend money in local restaurants and shops." The front features a picture of the South Downs with an image of Lewes resident Thomas Paine and
48-541: The common characteristics and major benefits of local currencies. Local currencies and the Transition Towns movement in the UK have been criticized for failing to address the needs of the wider population, especially lower socio-economic groups. Such local currency initiatives have been more widely criticized as having limited success in stimulating spending in local economies, and as an unrealistic strategy to reduce carbon emissions. Modern local currencies can be classified into
56-402: The following distinct types: Several software packages have been written supporting the management of community currencies. In 1998, Richard Kay, a senior lecturer at Birmingham City University, wrote a "Multi-registry System" specification for routing and processing community currency transactions using an approach designed to be decentralized, with no single point of control or failure, using
64-705: Was printed for the 750th anniversary of the Battle of Lewes in mid-2014. The value of the Lewes Pound is fixed at £1 stg, and in January 2023 could be used in any of approximately 100 shops and businesses in Lewes, many more than envisaged when the currency was first introduced. Occasionally local businesses give a discount for payment in Lewes Pounds. Some of the earliest notes were sold on eBay for substantially higher values, which led
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