| BerkShares | |||
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| ISO 4217 code | None, it is a local currency | ||
| User(s) | Berkshire County, Massachusetts, USA | ||
| Banknotes | 1, 5, 10, 20, 50 BerkShares | ||
| Central bank | BerkShares Inc. | ||
| Printer | Excelsior Printing | ||
BerkShares is a local currency that circulates in The Berkshires region of Massachusetts. It was launched September 29, 2006[1] by BerkShares Inc., with research and development assistance from the New Economics Institute. The BerkShares website lists over 370 businesses in Berkshire County that accept the currency.[2] In 30 months, 2.2 million BerkShares have been issued from 12 branch offices of five local banks.[3] The bills were designed by John Isaacs[4] and are printed by Excelsior Printing on special paper with incorporated security features from Crane & Co..[5] BerkShares are pegged with an exchange rate to the US dollar, but Nick Kacher of the New Economics Institute has discussed the possibility of pegging its value to 1 US gallon (3.8 L) of maple syrup to insulate the local economy against volatility in the US economy.[6]
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BerkShares are a local currency designed and issued for the Berkshire region of Massachusetts. According to the BerkShares website,[7] residents purchase BerkShares at 95 cents (USD) per BerkShare from one of twelve branches of five local participating banks. Businesses then accept BerkShares at full dollar value, differentiating the business as one supporting the BerkShares values of local economy, ecology, sustainability, and community, and creating a five percent discount incentive for those using the currency. BerkShares can then be used by accepting businesses to purchase goods and services from other participating businesses, make change, pay salaries, or support local non-profits, increasing the local economic multiplier effect and keeping value recirculating in the region. If businesses have an excess of BerkShares, they may also be returned to a participating bank at the equivalent rate of 95 cents per BerkShare (i.e., charging no exchange fee).
Over 70 area non-profits currently accept BerkShares for donations. Participating banks provide BerkShares with 13 brick-and-mortar offices where residents can exchange dollars for BerkShares and receive more information on the project.
BerkShares are printed in 1, 5, 10, 20, and 50 BerkShare denominations, and feature images of local people.
The BerkShares program seeks to foster collaboration among producers, retail businesses, non-profit organizations, service providers and consumers. It is an attempt to strengthen the local economy. The program also seeks to increase public awareness of the importance of local economies and to foster optimism for the prospect of gaining local economic self-sufficiency.
The project seeks to assure that a high percentage of each dollar spent will remain circulating in the community [7]. This increase in community capital creates a positive environment for new entrepreneurial ventures. It is hoped that new businesses sprouting from the resulting local generation of wealth will replace imported goods with locally produced items, which are more environmentally sustainable in that they do not need to be shipped over vast distances by the use of fossil fuels.
A number of other local currency initiatives, such as the Totnes pound and Lewes pound, are currently being developed built upon the BerkShares model. The BerkShares currency has attracted international media attention. The New York Times[8], The Times, ABC World News,[9] CBS,[10] BBC,[11] CNN,[12] NBC, CNBC, Reuters,[13], French Television TF1,[14] NTV Russia,[15] Business Week,[16] Associated Press,[17] and Yahoo News have all carried prominent stories on BerkShares.
When someone pays for goods or services with local money, the income to the business is taxable. Similar to gift cards, the applicable tax is taken at the time of purchase and paid to the IRS at the time of redemption by the merchant.