Liwa

A Community Currency
Benefits of a Local Currency

1.
1. Local
Local currencies
currencies with
with negative
negative interest
interest rate
rate or
or demurrage
demurrage tend
tend to to circulate
circulate much
much more
more
rapidly
rapidly than
than national
national currencies.
currencies. The
The same
same amount
amount ofof currency
currency in in circulation
circulation is
is employed
employed
more
more times
times and
and results
results in
in far
far greater
greater overall
overall economic
economic activity.
activity. It
It produces
produces greater
greater benefit
benefit
per
per unit.
unit. The
The higher
higher velocity
velocity ofof money
money isis aa result
result of
of the
the negative
negative interest
interest rate
rate which
which
encourages
encourages people
people to
to spend
spend thethe money
money more
more quickly.
quickly.

2.
2. Local
Local currencies
currencies enable
enable the
the community
community to to more
more fully
fully utilize
utilize its
its existing
existing productive
productive
resources,
resources, especially
especially unemployed
unemployed labor,
labor, which
which has has aa catalytic
catalytic effect
effect on
on the
the rest
rest ofof the
the local
local
economy.
economy. TheyThey are
are based
based on
on the
the premise
premise that
that the
the community
community is is not
not fully
fully utilizing
utilizing its
its
productive
productive capacities,
capacities, because
because of of aa lack
lack of
of local
local purchasing
purchasing power.
power. The
The alternative
alternative currency
currency
is
is utilized
utilized to
to increase
increase demand,
demand, resulting
resulting in
in aa greater
greater exploitation
exploitation of of productive
productive resources.
resources. So So
long
long asas the
the local
local economy
economy is is functioning
functioning at at less
less than
than full
full capacity,
capacity, the
the introduction
introduction of of local
local
currency
currency need
need not
not be
be inflationary,
inflationary, even
even when
when it it results
results in
in aa significant
significant increase
increase in in total
total
money
money supply
supply and
and total
total economic
economic activity.
activity.

3.
3. Since
Since local
local currencies
currencies are
are only
only accepted
accepted within
within the
the community,
community, their
their usage
usage encourages
encourages
the
the purchase
purchase of of locally
locally produced
produced and and locally-available
locally-available goods
goods and
and services.
services. Thus,
Thus, for
for any
any
level
level of
of economic
economic activity,
activity, more
more ofof the
the benefit
benefit accrues
accrues toto the
the local
local community
community and
and less
less
drains
drains out
out to
to other
other parts
parts of
of the
the country
country oror the
the world.
world. For
For instance,
instance, construction
construction work
work
undertaken
undertaken with
with local
local currencies
currencies employs
employs local
local labor
labor and
and utilizes
utilizes as
as far
far as
as possible
possible local
local
materials.
materials. The
The enhanced
enhanced local
local effect
effect becomes
becomes an an incentive
incentive for
for the
the local
local population
population to
to
accept
accept and
and utilize
utilize the
the scrips.
scrips.

4.
4. Some
Some forms
forms of
of complementary
complementary currency
currency can
can promote
promote fuller
fuller utilization
utilization of
of resources
resources over
over aa
much
much wider
wider geographic
geographic area
area and
and help
help bridge
bridge the
the barriers
barriers imposed
imposed by by distance.
distance. The
The Fureai
Fureai
kippu
kippu system
system in in Japan
Japan issues
issues credits
credits in
in exchange
exchange for
for assistance
assistance to to senior
senior citizens.
citizens. Family
Family
members
members living
living far
far from
from their
their parents
parents can
can earn
earn credits
credits by
by offering
offering assistance
assistance toto the
the elderly
elderly
in
in their
their local
local community.
community. The The credits
credits can
can then
then be
be transferred
transferred toto their
their parents
parents and
and redeemed
redeemed
by
by them
them for
for local
local assistance.
assistance. Airline
Airline frequent
frequent flyer
flyer miles
miles are
are aa form
form ofof complementary
complementary
Bay Bucks Case study

Bay
Bay Bucks
Bucks aims
aims to
to create
create decentralized,
decentralized, autonomous
autonomous economic
economic activity
activity that
that ends
ends several
several
types
types of
of exploitation.
exploitation. AA robust
robust local
local currency
currency thatthat works
works atat zero
zero percent
percent interest
interest and
and
incorporates
incorporates bartering
bartering can
can end
end the
the extraction
extraction of of wealth
wealth from
from local
local economies
economies by by big
big box
box
chain
chain stores
stores and
and large
large corporations.
corporations. ItIt can
can also
also end
end the
the extraction
extraction ofof wealth
wealth by
by private
private
banks
banks that
that charge
charge high
high interest.
interest. By
By placing
placing value
value on
on conserving
conserving and
and sharing
sharing resources,
resources, Bay
Bay
Bucks
Bucks is
is steering
steering communities
communities awayaway from
from the
the excessive
excessive extraction
extraction ofof natural
natural resources
resources and
and
getting
getting people
people to
to re-think
re-think the
the necessity
necessity of of infinite
infinite growth.
growth.

The
The message
message [of[of local
local currency]
currency] resonates
resonates with
with other
other sustainability
sustainability movements,
movements, Chong
Chong
Kee
Kee says.
says. It
It supports
supports the
the goal
goal of
of the
the Transition
Transition movement
movement for for an
an environmentally
environmentally
sustainable
sustainable economy
economy because
because aa local
local currency
currency makes
makes itit harder
harder to
to globally
globally import
import raw
raw
material
material and
and export
export wastes.
wastes. As
As production
production and
and consumption
consumption become
become more
more and
and more
more
localized,
localized, their
their environmental
environmental impact
impact will
will also
also become
become more
more localized
localized and
and thus
thus visible
visible and
and
actionable.
actionable.

A
A good
good local
local currency
currency can
can also
also protect
protect communities
communities from
from the
the effects
effects of
of capitalisms
capitalisms
perpetual
perpetual crises.
crises. Local
Local currencies
currencies that
that use
use the
the mutual
mutual credit
credit model
model are
are more
more shielded
shielded from
from
the
the excess
excess and
and then
then dearth
dearth ofof money
money during
during boom-bust
boom-bust cycles,
cycles, he
he says.
says. During
During aa bust
bust
when
when banks
banks are
are not
not lending
lending and
and there
there isnt
isnt enough
enough money
money around,
around, businesses
businesses cancan switch
switch to
to
using
using barter
barter exchanges
exchanges to to continue
continue trading
trading with
with each
each other.
other. These
These businesses
businesses areare more
more
resilient
resilient to
to economic
economic shock
shock than
than those
those who
who dodo not
not have
have this
this option.
option.

On
On top
top of
of all
all that,
that, Bay
Bay Bucks
Bucks isis structured
structured as
as aa cooperative
cooperative business,
business, building
building both
both internal
internal
worker
worker democracy
democracy and and stakeholder
stakeholder not
not shareholder
shareholder democracy
democracy among
among its
its membership.
membership.
And
And by
by decreasing
decreasing overhead
overhead and
and other
other operation
operation costs
costs for
for local
local sustainable
sustainable businesses,
businesses, it
it
serves
serves as
as aa firewall
firewall against
against the
the colonization
colonization of
of neighborhood
neighborhood commerce
commerce byby large
large
corporations.
corporations.
Bay Bucks Case Study

Writing
Writing for
for Roar
Roar magazine
magazine back
back inin 2014,
2014, Jerome
Jerome Roos
Roos pointed
pointed out
out that
that money
money is is aa social
social
relation,
relation, not
not aa real
real thing.
thing. Money
Money is is bound
bound upup with
with trust.
trust. Furthermore,
Furthermore, since
since banks
banks create
create
the
the money
money they
they lend,
lend, money
money is is inscribed
inscribed byby authority.
authority. Currency
Currency is
is simply
simply aa symbolic
symbolic
certification
certification of
of money
money aa piece
piece ofof paper,
paper, aa blip
blip on
on aa computer
computer screen,
screen, representing
representing aa
network
network ofof authority
authority and
and trust.
trust.

That
That inscription
inscription is
is done
done by
by authorities
authorities who
who are
are often
often very
very far
far away,
away, literally
literally and
and figuratively,
figuratively,
from
from the
the communities
communities thatthat rely
rely on
on local
local economic
economic activity
activity to
to keep
keep them
them healthy
healthy and
and
autonomous.
autonomous. Corporate
Corporate capitalism,
capitalism, meanwhile,
meanwhile, isis parasitic.
parasitic. Shareholders
Shareholders and and chain
chain stores
stores
remove
remove from
from local
local communities
communities the the money
money people
people spend
spend on
on goods
goods and
and services.
services. Outside
Outside
investors
investors sometimes
sometimes seesee financial
financial opportunities
opportunities inin communities,
communities, rapidly
rapidly invest
invest in
in them,
them,
overheating
overheating the
the local
local economy
economy thenthen pulling
pulling out
out aa short
short time
time later,
later, leaving
leaving those
those areas
areas in
in
ruins.
ruins.

Lenders,
Lenders, investors,
investors, financiers
financiers and
and capitalists
capitalists do
do all
all this
this with
with issued
issued money
money that
that represents
represents
social
social relations,
relations, trust
trust and
and authority.
authority. Community
Community members,
members, although
although legally
legally limited
limited from
from
producing
producing sovereign
sovereign currency,
currency, can
can do
do the
the same
same thing:
thing: inscribe
inscribe their
their own
own authority,
authority, trust
trust and
and
relationships
relationships onto
onto systems
systems of
of local
local currency
currency in
in order
order to
to achieve
achieve social
social goals
goals that
that are
are
different,
different, closer
closer to
to home,
home, and
and more
more sustainable
sustainable than
than the
the goals
goals associated
associated with
with big
big money.
money.

Bay
Bay Bucks
Bucks operates
operates aa commercial
commercial barter
barter system
system where
where businesses
businesses with with unused
unused inventory
inventory or
or
excess
excess capacity
capacity can
can deposit
deposit their
their excess
excess into
into an
an exchange,
exchange, and and withdraw
withdraw other
other
businesses
businesses excess
excess goods
goods and
and services.
services. AA digital
digital currency
currency is is used
used for
for all
all the
the transactions,
transactions,
and
and those
those Bay
Bay Bucks
Bucks can
can be
be spent
spent onon items
items inin that
that self-contained
self-contained marketplace.
marketplace. There
There is
is
no
no interest
interest on
on balances
balances debited
debited to to Bay
Bay Bucks.
Bucks. Even
Even absent
absent itsits revolutionary
revolutionary tendencies,
tendencies, aa
good
good local
local currency
currency system
system isis good
good for
for local
local business.
business. Bay
Bay Bucks
Bucks helps
helps businesses
businesses find
find
buyers
buyers other
other participants
participants in
in the
the system
system for
for extra
extra goods
goods andand surplus
surplus labor.
labor. The
The
organization
organization also
also recruits
recruits other
other businesses
businesses into
into the
the system
system to to meet
meet the
the needs
needs expressed
expressed by
by
members.
members. AndAnd the
the benefits
benefits are,
are, as
as Chong
Chong Kee
Kee says,
says, counter-cyclical.
counter-cyclical. This This means
means that
that
Bristol Pound Case Study

The
The Bristol
Bristol Pound
Pound isis aa local
local and
and community
community currency
currency that
that was
was created
created toto improve
improve Bristols
Bristols
local
local economy.
economy. Its
Its primary
primary aimaim is
is to
to support
support independent
independent traders
traders in
in order
order to
to maintain
maintain
diversity
diversity in
in business
business around
around the
the city.
city. The
The scheme
scheme is
is aa joint
joint not-for-profit
not-for-profit enterprise
enterprise between
between
Bristol
Bristol Pound
Pound Community
Community Interest
Interest Company
Company andand Bristol
Bristol Credit
Credit Union.
Union.

If
If aa person
person spends
spends Bristol
Bristol Pounds
Pounds at at aa local
local shop,
shop, the
the owner
owner of of this
this shop
shop can
can respend
respend them
them
by
by using
using them
them toto buy
buy supplies
supplies from
from another
another local
local business,
business, paypay local
local taxes
taxes (Business
(Business Rates
Rates
or
or Council
Council Tax)
Tax) to
to Bristol
Bristol City
City Council.
Council. The The business
business can
can for
for instance
instance useuse their
their Bristol
Bristol Pounds
Pounds
to
to pay
pay aa farmer
farmer in in the
the Avon
Avon area
area forfor fresh
fresh fruit
fruit and
and vegetables.
vegetables. This
This farmer
farmer cancan pay
pay aa local
local
architect,
architect, which
which accepts
accepts Bristol
Bristol Pounds,
Pounds, to to renovate
renovate aa part
part of
of his
his farm,
farm, and
and so
so on.
on. In
In this
this
way
way money
money keeps
keeps onon circulating
circulating locally
locally to to benefit
benefit local
local independent
independent businesses
businesses in in the
the area;
area;
this
this isis called
called the
the local
local multiplier
multiplier effect.
effect. If If the
the person
person had
had spent
spent Sterling
Sterling Pounds
Pounds atat aa
supermarket
supermarket chain chain instead,
instead, for
for example,
example, more more than
than 80%
80% of
of their
their money
money would
would have
have left
left the
the
area
area almost
almost immediately.
immediately. Use Use of
of aa local
local currency
currency thus
thus increases
increases cashcash flow
flow between
between
independent
independent businesses
businesses and and stimulates
stimulates local local employment
employment and and sustainable
sustainable local
local economic
economic
development.
development.

Using
Using aa local
local currency
currency not
not only
only stimulates
stimulates the
the local
local economy,
economy, butbut also
also creates
creates stronger
stronger
bonds
bonds within
within the
the community
community by by increasing
increasing social
social capital.
capital. Moreover,
Moreover, buying
buying locally
locally
decreases
decreases emissions
emissions through
through reduced
reduced transportation
transportation externalities.
externalities. Generally,
Generally, internal
internal trade
trade
through
through the
the use
use of
of complementary
complementary currencies
currencies isis aa resilience
resilience strategy,
strategy, which
which reduces
reduces thethe
impact
impact ofof national
national economic
economic crises
crises and
and dependency
dependency on on international
international trade
trade (such
(such asas fossil
fossil
fuels,
fuels, food,
food, etc.)
etc.) by
by enhancing
enhancing self-sufficiency.
self-sufficiency. Finally,
Finally, the
the use
use of
of aa local
local currency
currency increases
increases
the
the awareness
awareness of of the
the impact
impact of
of ones
ones economic
economic activity.
activity.

Bristol
Bristol Pound
Pound contributed
contributed to to Bristol
Bristol being
being awarded
awarded thethe title
title of
of European
European Green
Green Capital
Capital 2015.
2015.
Every
Every paper
paper B
B is
is backed
backed upup by
by aa pound
pound sterling
sterling deposited
deposited at at Bristol
Bristol Credit
Credit Union.[16]
Union.[16] The
The
Bristol
Bristol Pound
Pound is
is not
not legal
legal tender,
tender, and
and participation
participation is
is therefore
therefore voluntary.[5][20]
voluntary.[5][20] The
The
directors
directors of
of the
the scheme
scheme cannot
cannot prevent
prevent national
national and
and multinational
multinational companies
companies accepting
accepting
Barbadian Dollar Case Study

One
One thing
thing people
people have
have toto understand
understand is is how
how Barbados,
Barbados, among
among other
other Caribbean
Caribbean countries,
countries,
has
has been
been struggling
struggling with
with the
the financial
financial system
system for
for many
many decades
decades now.
now. As
As aa result
result of
of these
these
conflicts,
conflicts, there
there is
is very
very little
little to
to no
no banking
banking infrastructure
infrastructure available
available in
in the
the region.
region. This
This makes
makes
cash
cash one
one of
of the
the preferred
preferred methods
methods of of payment
payment in in Barbados
Barbados and
and surrounding
surrounding countries.
countries.

Such
Such an
an awkward
awkward financial
financial situations
situations left
left its
its mark
mark on
on both
both companies
companies and and consumers
consumers inin
Barbados.
Barbados. Bitt
Bitt wants
wants to
to address
address this
this situation
situation and
and play
play its
its role
role in
in putting
putting the
the region
region on
on the
the
economic
economic landscape
landscape map.
map. Other
Other companies
companies havehave been
been trying
trying toto make
make progress
progress in
in this
this
regard
regard as
as well,
well, although
although they
they have
have very
very little
little to
to show
show for
for it
it so
so far.
far.

Solving
Solving such
such aa major
major problem
problem will
will not
not be
be easy,
easy, though,
though, albeit
albeit the
the introduction
introduction of of blockchain
blockchain
technology
technology could
could shake
shake upup things
things quite
quite aa bit.
bit. While
While there
there still
still are
are aa lot
lot of
of issues
issues toto sort
sort out,
out,
the
the Barbadian
Barbadian Digital
Digital Dollar
Dollar solves
solves some
some of of the
the problems
problems associated
associated withwith the
the lack
lack of
of
financial
financial infrastructure.
infrastructure. Sending
Sending andand receiving
receiving money
money inin aa convenient
convenient manner
manner is is not
not always
always
possible,
possible, but
but aa digital
digital version
version of
of fiat
fiat currency
currency could
could address
address this
this problem
problem rather
rather quickly.
quickly.

What
What makes
makes thethe concept
concept of
of the
the Barbadian
Barbadian Digital
Digital Dollar
Dollar even
even more
more appealing
appealing is is how
how
consumers
consumers cancan send
send and
and receive
receive funds
funds byby using
using aa mobile
mobile device.
device. This
This will,
will, in
in turn,
turn, influence
influence
the
the commercial
commercial side
side of
of everyday
everyday life,
life, as
as frictionless
frictionless payments
payments start
start to
to make
make their
their way
way toto
business
business all
all over
over Barbados.
Barbados. Additionally,
Additionally, auditors
auditors will
will be
be able
able to
to verify
verify the
the signatures
signatures inin aa
cryptographic
cryptographic manner
manner onon an
an unparalleled
unparalleled security
security level.
level.

It
It is
is important
important toto note
note that
that the
the Barbadian
Barbadian Digital
Digital Dollar
Dollar does
does not
not resemble
resemble Bitcoin
Bitcoin by
by any
any
means.
means. AsAs one
one would
would come
come toto expect
expect from
from aa digitized
digitized version
version of
of fiat
fiat currency,
currency, one
one
Barbadian
Barbadian Digital
Digital Dollar
Dollar is
is worth
worth the
the same
same as
as one
one Barbadian
Barbadian Dollar
Dollar issued
issued by
by the
the Central
Central
Bank.
Bank. The
The integration
integration of of blockchain
blockchain technology
technology will
will allow
allow consumers
consumers to to do
do more
more with
with their
their
money
money butbut in
in aa digital
digital fashion.
fashion.
SoNantes Case Study

The
The SoNantes
SoNantes is
is an
an all-digital
all-digital currency
currency aimed
aimed at
at economic
economic development
development of
of local
local businesses.
businesses.

Inspired
Inspired by
by the
the WIR
WIR system
system inin place
place in
in Basel,
Basel, Switzerland
Switzerland it
it includes
includes aa mutual
mutual credit
credit system
system
that
that allows
allows businesses
businesses toto provide
provide goods
goods and
and services
services to
to each
each other
other without
without spending
spending Euros,
Euros,
with
with individual
individual shoppers
shoppers also
also able
able to
to participate
participate by
by opening
opening up up an
an account
account at
at the
the local
local
credit
credit union.
union. SoNantes
SoNantes cards
cards can
can then
then be
be used
used on
on public
public transport,
transport, in
in shops
shops and
and cafes
cafes as
as
well
well as
as to
to pay
pay for
for certain
certain council
council services.
services.

Promoted
Promoted byby the
the city
city of
of Nantes
Nantes and
and the
the intercommunal
intercommunal structure
structure of
of Nantes
Nantes Mtropole,
Mtropole, the
the
currency
currency is
is being
being implemented
implemented byby the
the Crdit
Crdit Municipal
Municipal de
de Nantes
Nantes across
across the
the entire
entire area
area of
of
Greater
Greater Nantes.
Nantes.

As
As aa system
system for
for exchanging
exchanging of of goods
goods and
and services
services between
between businesses
businesses (B2B)
(B2B) and
and
individuals
individuals (B2C)
(B2C) the
the use
use of
of this
this deposit
deposit money
money isis regulated
regulated byby aa mutual
mutual credit
credit system
system
aimed
aimed atat recording
recording each
each users
users credits
credits and
and debits,
debits, within
within limits
limits set
set on
on aa case-per-case
case-per-case basis.
basis.
Individuals
Individuals will
will be
be able
able to
to make
make purchases
purchases from
from any
any company
company that
that has
has joined
joined the
the scheme
scheme
(traders,
(traders, shops,
shops, craftsmen,
craftsmen, etc.)
etc.) through
through aa payment
payment system
system that
that does
does not
not rely
rely on
on coins
coins or
or
banknotes
banknotes butbut allows
allows all
all transactions
transactions toto be
be paid
paid through
through swiping
swiping aa SoNantes
SoNantes card
card that
that links
links
directly
directly to
to an
an online
online account.
account.

Nantess
Nantess currency
currency will
will be
be in
in use
use within
within the
the 24
24 municipalities
municipalities of
of the
the local
local conurbation.
conurbation. Its
Its
aims
aims are
are to
to complement
complement thethe Euro
Euro as
as an
an tool
tool that
that helps
helps promote
promote exchanges
exchanges between
between local
local
economic
economic stakeholders,
stakeholders, and
and inin turn
turn contribute
contribute to
to the
the balanced
balanced development
development ofof the
the local
local
area.
area.

The
The SoNantes
SoNantes is
is currently
currently in
in the
the alpha-testing
alpha-testing stage
stage and
and is
is set
set to
to launch
launch to
to the
the public
public in
in
January
January 2015.
2015.
TradeQoin Case Study

As
As aa TradeQoin
TradeQoin entrepreneur,
entrepreneur, youyou sell
sell your
your products
products or
or services
services toto other
other entrepreneurs
entrepreneurs in in
the
the TradeQoin
TradeQoin network.
network. Naturally,
Naturally, these
these entrepreneurs
entrepreneurs also
also sell
sell their
their products
products and and services
services
to
to you.
you. You
You pay
pay each
each other
other with
with the
the TradeQoin.
TradeQoin. No
No small
small change,
change, no no bills
bills just
just digital
digital
currency,
currency, linked
linked to
to an
an online
online TradeQoin
TradeQoin bank
bank account.
account. The
The math
math is is super
super simple,
simple, too:
too: 11
TradeQoin
TradeQoin isis worth
worth the
the same
same asas 1
1 Euro
Euro

Always
Always zero
zero
When
When you
you sell
sell something
something toto another
another TradeQoin
TradeQoin entrepreneur,
entrepreneur, your
your account
account balance
balance
increases
increases and
and their
their balance
balance decreases.
decreases. AsAs soon
soon as
as they
they sell
sell something,
something, however,
however, their
their
balance
balance increases
increases again.
again. By
By doing
doing business
business with
with each
each other,
other, you
you are
are constantly
constantly extending
extending
lines
lines of
of credit
credit that
that always
always have
have toto be
be earned
earned back
back within
within the
the network.
network. This
This means
means that
that if
if
you
you add
add up
up all
all the
the balances
balances in
in the
the network,
network, youll
youll always
always arrive
arrive at
at zero.
zero.

Supplier
Supplier credit
credit
Is
Is your
your company
company healthy?
healthy? IsIs there
there enough
enough demand
demand toto cover
cover your
your supply?
supply? If
If so,
so, you
you can
can
apply
apply for
for aa supplier
supplier credit.
credit. This
This allows
allows you
you to
to spend
spend TradeQoins
TradeQoins even
even though
though youyou havent
havent
earned
earned them
them yet.
yet. This
This way,
way, you
you get
get all
all the
the benefits
benefits of
of credit
credit without
without any
any of
of the
the drawbacks
drawbacks
after
after all,
all, you
you dont
dont pay
pay interest
interest when
when your
your account
account is
is overdrawn.
overdrawn. ByBy the
the way,
way, aa positive
positive
balance
balance doesnt
doesnt generate
generate interest
interest either.
either.

Communities
Communities
At
At TradeQoin,
TradeQoin, we
we want
want toto make
make local
local SMEs
SMEs strong
strong and
and healthy
healthy again.
again. How
How do
do we
we do
do that?
that?
Simple:
Simple: by
by setting
setting up
up local
local networks
networks and
and getting
getting entrepreneurs
entrepreneurs to
to do
do business
business with
with each
each
other.
other. We
We call
call these
these local
local networks
networks communities.
communities.

TradeQoin
TradeQoin NL
NL provides
provides the
the overall
overall network
network for
for all
all Dutch
Dutch communities.
communities. An
An overview
overview of
of all
all the
the
products
products and
and services
services offered
offered in
in all
all communities
communities can
can be
be found
found in
in the
the Marketplace
Marketplace (link
(link to
to
Marketplace).
Marketplace).
Eco-Pesa, Kenya Case Study

Eco-Pesa
Eco-Pesa isis the
the name
name ofof aa Kenyan
Kenyan community
community currency,
currency, used
used to
to reduce
reduce poverty
poverty and
and support
support
environmental
environmental conservation
conservation in in aa slums
slums areas
areas inside
inside the
the Kongowea
Kongowea Location,
Location, Mombasa
Mombasa
District,
District, Kenya.[1][2][3]
Kenya.[1][2][3] Pesa[4]
Pesa[4] isis the
the Kiswahili
Kiswahili word
word for
for money.
money. Eco-Pesa's
Eco-Pesa's was
was in
in
circulation
circulation for
for one
one year
year and
and was
was considered
considered the
the pilot
pilot that
that resulted
resulted in
in the
the more
more sustainable
sustainable
Bangla-Pesa
Bangla-Pesa model
model ofof community
community currencies
currencies that
that have
have been
been duplicated
duplicated inin five
five communities
communities
in
in Kenya
Kenya and
and two
two in
in South
South Africa.
Africa.

Eco-Pesa
Eco-Pesa were
were introduced
introduced byby William
William O.O. Ruddick,[7][8]
Ruddick,[7][8] MayMay 2010
2010 to to three
three slum
slum villages
villages (or
(or
informal
informal settlements)
settlements) inside
inside the
the Kongowea
Kongowea Location
Location in in Mombasa
Mombasa County,
County, namely:
namely: Kisimu
Kisimu
Ndogo,
Ndogo, Shauri
Shauri Yako
Yako and
and Mnazi
Mnazi Mmoja.
Mmoja. Once
Once registered,
registered, local
local businesses
businesses become
become part
part of
of aa
Business
Business Network.
Network. Once
Once in
in this
this network,
network, businesses
businesses areare allowed
allowed to to exchange
exchange their
their Eco-Pesa
Eco-Pesa
Voucher
Voucher for
for the
the national
national currency
currency Kenyan
Kenyan shillings
shillings backed
backed by by donor
donor funds.
funds. They
They also
also receive
receive
business
business and
and environmental
environmental training.
training. Businesses
Businesses included
included butbut were
were notnot limited
limited to
to general
general
shops,
shops, pharmacies,
pharmacies, health
health clinics,
clinics, child
child care,
care, haircuts,
haircuts, charcoal
charcoal kiosks,
kiosks, produce
produce sellers,
sellers,
poultry
poultry sellers,
sellers, transportation
transportation providers,
providers, water
water sellers,
sellers, and
and distributors.
distributors. The
The Eco-Pesa
Eco-Pesa
themselves
themselves were
were security
security printed
printed with
with several
several security
security features
features including:
including: Visicoin
Visicoin printing,
printing,
UV
UV ink,
ink, security
security designed
designed backgrounds
backgrounds and and watermarked
watermarked paperpaper with
with UVUV fibers,
fibers, as
as well
well as
as
serial
serial numbering.[9]
numbering.[9]

The
The Eco-Pesa
Eco-Pesa vouchers
vouchers were
were available
available in
in 5/ep,
5/ep, 10/ep,
10/ep, and
and 20/ep
20/ep denominations
denominations andand depict
depict
local
local landmarks
landmarks such
such as
as the
the Kengelele
Kengelele Bell,
Bell, Nyali
Nyali Beach
Beach and
and the
the Nayli
Nayli Bridge.[2]
Bridge.[2]

The
The advantages
advantages of of local
local currencies
currencies for
for the
the empowerment
empowerment of
of women
women was
was demonstrated
demonstrated
through
through this
this first
first phase
phase of of eco-pesa,
eco-pesa, as
as many
many women
women set
set up
up their
their own
own businesses
businesses with
with eco-
eco-
pesa
pesa
 Strategy I
Team Constituion
Find a group of people with common ground that are easy to get along with. It's important to
share goals and values with your core group, otherwise your project will be pulled in many
directions. You may split into separate projects at some point; that's often better than trying to
duke it out with people who want to do their own thing. Focus on quality volunteer recruitment.
Don't get discouraged when people come and go.

Goal Definition
Define your goals and prioritize them. Do you want to support local business or low income
folks? Do you want encourage ridesharing or reward senior care? You may have many goals -
currencies can have an effect on many problems - but be clear about your priorities and target
audience as this will shape all of your decisions, including what kind of currency you use.
A currency is never an end in itself, but has to be seen as a facilitator of flows within the
system of a whole community and economy," said John Rogers, who teaches how to start
currencies at Value for People in the U.K. "Its essential systemic role is to match underused
assets and unmet needs.

Tool or Technology Selection

Currencies are not one-size-fits-all. It is crucial that you pick the right tool, with the option to
expand into multiple tools later. It should be as easy to use as the other kind of money. REAL
Dollars of Lawrence, KS ended because businesses didn't have an easy way to spend them.
Vermont Businesses for Social Responsiblity switched to open source software for their
business to business exchange to customize their interface and make it as simple to use - a
very smart investment.
 Strategy II
Know your community
How does your community use money, what are its assets and what does it need? Design a
plan based on the reality of your community, not just on your own ideals. Whether you are
working with businesses, nonprofits or community members, survey them or conduct focus
groups to test the new currency before you finish your design. If your tool is online, but your
community is mostly offline, it won't get used.

Governance and Organizational structure

Like any project we need good governance. People will expect responsible and transparent
governance for a resource as valuable as a currency - that trust determines its value.
Encourage diverse community participation and representation in your governance, especially
from your members. Your decision to be a business or nonprofit will be determined by your
goals, and currency type. Only entities that have charitable or educational aims can be
nonprofits. That's not to say your business can't operate like a nonprofit, but you won't be
eligible for grants and donations, though you may be able to get small investments

Area or Region Definition

a wider geographic area may provide the diversity of services and goods that makes a currency
useful. Too wide an area though, like the Southwest, may be meaningless and not effective in
building trust and solidarity. Ideally, it would be an area diverse enough to provide most of the
necessities of life, and small enough to allow direct exchange, community-building and
accountability. Regional currencies, like the Cheimgauer in Germany and Berkshares in
Massachusetts have done well partly for this reason. If you don't grow food in your community,
you may want to expand your reach to farming areas.
 Strategy III
Partnership Development
Find allied organizations to help recruit members/users, develop programmatic partnerships
and raise your status in the community. An ally may serve also as a fiscal sponsor to bear the
burden of organizational tasks while you focus on organizing. Choosing partnerships should
depend both on your goals (e.g. pick an environmental organization to support gardening or a
social justice organization to reach low income groups) and their ability to provide support,
such as event space, outreach, trainings or programmatic development. A good way to begin a
partnership is to do a presentation to their staff and then ask them if there is one small thing
they'd like to achieve by using the currency, like a website upgrade, and help them do that.
Partnerships work best as a two-way street.

Develop Circulation (Flow) Plan

Bernard Leitaer, who is often considered the godfather of community currencies and helped
design the Euro, says ...this is where a lot of community currencies have failed. They have
neglected to close complete circulation patterns, and as a result...it tends to pool in particular
parts of the system. To keep the energy flowing, identify unmet needs and underutilized
resources in your community, especially those not served by the conventional system. Be a
match-maker. If seniors need companionship and your pet shelter needs socialization for its
animals, or you have unemployed people without job skills and a nonprofit or business startup
that needs volunteers, you may have a match.

Reverse Fund
Hey, the government does it, why can't we? As long as members agree it's a good use of
resources, don't be shy about using your currency to pay staff, reward volunteers, put on
events, or do marketing. Ithaca Hours uses its currency as a reward for attending organizing
meetings and swapmeets. Using your currency to fund your project is also good practice in
learning how to use it. Membership or transaction fees are also a good practice. However, it's
helpful to lower the barrier to entry as much as possible in the first year or two so you have
more members offering diverse skills and goods to increase your currency's value (fees may
Outline

Industry overview

About Us

Business model & rollout plan

Projection
 Contact

Ifa Computing
[email protected]