Complementary currency

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Complementary currency is a hypernym (superordinate) of local currency (also referred to as community currency) and sectoral currency.

Complementary currencies describe a wide group of currencies or scrips designed to be used in combination with standard currencies or other complementary currencies. They can be valued and exchanged in relationship to national currencies but also function as media of exchange on their own. Complementary currencies lie outside the nationally defined legal realm of Legal tender and are not used as such. Rate of exchange, scope of circulation and use in combination with other currencies differs greatly between complementary currency systems, as is the case with national currency systems.

Some complementary currencies incorporate value scales based on time or the backing of real resources (gold, oil, services, etc). A Time-based currency is valued by the time required to perform a service in hours, notwithstanding the potential market value of the service.

Some complementary currencies take advantage of demurrage fees, an intentional devaluation of the currency over time, like negative interest. This stimulates market exchanges in the devaluating currency, propagates new participation in the currency system and forces the storage of wealth (hoarding) ability usually reserved for currency into more permanent and better value holding tools like (property, improvement, education, technology, health, etc) all of which are sheltered from the currency based demurrage fees.

Other experimental complementary currencies use high interest fees to promote heavy competition between participants, and the removal of wealth from long term wealth holding structures (natural/material wealth, property, etc) to aid in the process of rapid industriaization, mass production, automation and competitive innovation.

Monetary speculation and gambling are usually outside the design parameters of complementary currencies. Complementary currencies are often intentionally restricted in their regional spread, time of validity or sector of use and may require a membership of participating individuals or points of acceptance.

1 See also
2 External links
- 2.1 Complementary, local exchange software and systems design
- 2.2 Examples of complementary currencies currently circulating

[edit] See also

[edit] External links

Appropriate Economics Local Exchange Systems in Africa, Asia, and Latin America
ccSyndicator Collaborative IT Committee for Complementary Currencies
Complementary Currency Database Online Database of Complementary Currencies Worldwide
Complementary Currency Resource Center Resource Center for Complementary Currencies
Local and Interest-Free or Alternative Currencies, Social Credit and Microcredit Detailed Links to more Complementary Currency Sites
Living Economies Complementary Currency Resources and Link Directory
SANE Community Exchange System International Complementary Currency system
Systemfehler.de Digital Library of Complementary Currency and Alternative Economics Literature
transaction.net Simple and clear explanations of various Complementary currencies
Yootles A complementary currency being developed at Yahoo!
Multilingual Complementary Currency Library