community currencies in '99 

 

 

Community currencies have always been a good idea. During times of shortage such as the Great Depression, they have often been used as a complement to scarce conventional / national currencies. There are now perhaps 2000 such complementary currencies in operation around the world.

These pages are our introduction to cc development - as a matter of some urgency.

 

reasons

Community currencies (cc) are needed now, more than ever, to help deal with the possible system disruptions caused by the Year 2000 computer date problem (Y2K) and the global recession likely to follow.

Y2K also presents us with the opportunity to change destructive patterns of social and economic behaviour and create community systems that are truly sustainable. In their various forms and functions, community currencies are essential tools for anyone, and any group, preparing for an uncertain future.

We begin with long term community economic development strategies, ecological and other imperatives, and the urgent need for Y2K preparations at the community, regional and global levels.

 

means

An open and effective network requires stability and continuity both of the currencies themselves and of the services that support them. This in turn demands financial viability in operations and development.

We recommend starting cc development with community way, a self-financing project requiring minimal resources.

A complete cc system development strategy appropriate to desirable rapid, decentralized and essentially chaordic growth are described in the LETSystem Design Manual.

Most cc systems can be operated perfectly well as accounts (LETSystems), and in some circumstances paper notes or coins (Mexican Tlaloc) are workable. Currently, cc systems around the world are small, with very little business involvement.

This is about to change. A technological breakthrough, cc smart card systems, makes the introduction of cc to the business community considerably easier. There is growing acceptance of conventional smart cards for business loyalty programs. People like them where they save money. They will like cc cards for that, and like them more for their community benefits.

 

actions

Here in the Comox Valley, B.C., Canada, where the LETSystem was first designed and implemented in 1982, we are currently testing the first cc smart card systems with our local merchants. We are also piloting a financing and feasibility study that can be adapted to kick start a low budget community way project. Our local Y2K preparations are focused around a food security project. However, cc funding can be applied to as many purposes as the community chooses.

Ideally, one should start a cc/community way program with enough funds in place to operate for perhaps 2 to 3 months before revenues can be expected to match costs - probably between $10,000 and $20,000 initial working capital for full time effort of three or more people. A fictional scenario and a real business plan for such a launch are available.

However, smart cards will make cc much more attractive to business, and hence significantly reduce the time and working capital required to reach break-even operating levels, perhaps with as little as $1000 in working capital.

To support the propagation and further development of cc card systems, an introductory "take 5" program offers a 5 day free trial of the hardware. The build up of the inventory (the bank) of smart devices necessary for this program is funded from the recycling of initial revenues.

We (meme - have cards, will travel) are available for cc consultation and development.

 

 

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