Learning about local currency (2)

In this post, let's look at the problems and solutions of local currency. View last post

Problems:

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The local economic revival has always been the goal of the government district. The main purpose of community currencies is to seek the regional self reliance. However, the paper currencies and vouchers have not shown any outstanding outcome since they were created.

Why?

It is Inconvenient.

Since not many region are self sufficient, using general money from the central government and local currency is inconvenient.

Also, it is difficult for people today to use instead of convenient mobile banking system.

The Gangwon voucher in Gangwon-do Province did not became known for the representative community voucher using region although they had tons of people from outside due to the Winter Olympic last year.

Lack of the member stores and existing Onuri-vouchers for the traditional market caused paper currencies market saturation. Despite the effort of issuing by the local government, the residents rather prefer exchanging vouchers into the general money.

Solutions:

The Bristol district government issued Bristol Pound to solve these problems above.

The Bristol Pound is just like the general money, which is able to create bank accounts and use mobile system. One of the main benefit of using the Bristol Pound is that the members can pay their council tax.

By paying volunteers out of the Bristol Pound, Bristol changes social values to economic values. Thus it gathered a large group of members that over 900 companies use the Bristol Pounds and over 1200 BP bank accounts have been created.

While the local currencies were printed to paper money such as the general money, NW, the community currency of Nowon district, Seoul collaborated with Glosfer built the blockchain network that makes virtual wallet for the NW members.

Through the Smart Contract, every transaction get clearer and more trustworthy with prevent forgery beforehand. By eliminating need of printing actual bills, it is more efficient and reasonable.

The strength of NW attracted many young members, which eventually increases its accessibility. As more users join, the NW service becomes more beneficial. Since 4 months after NW service had launched, total members have over tripled from 1500 to 5400.

Volunteering becomes economic values in Nowon district, like Bristol Pound, which connects to 170000 potential members who have ever volunteered in Nowon.

The number of stores where accept NW are now tripled from 60s to 189 and the Nowon district are setting a goal of 500% increasing.

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There are some cases of focusing local currency to replace the distrust toward national economy.

Hyperinflation in Zimbabwe.

Currently people in Zimbabwe and Venezuela are hoping that Bitcoin may be their relief from the corrupted nation. Their value has been moved from hyper-inflated general money to decentralized paperless virtual money.

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A farmer in Kolionovo, Russia who could not afford the loan interest invented Kolion, the Kolionovo confined paperless currency.

As the value of Kolion went up high due to the massive transaction between farmers, Russian central government tried
to control over Kolion. The founder of Kolion converted itself to a cryptocurrency through ICO by emphasizing the characteristic of blockchain, permanence. According to the local media report, Kolion is predominately used among the Russian farmers that the worth of Koliperon is 2,000,000 US dollars.

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The main theory of blockchain technology is quite apart from current local currencies by the local governments.

What people value has been changing over time.

In consideration of the characteristic of the blockchain technology, world widely local currencies are created and disappeared even now.

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In the following post I'll talk about local currency in Kenya and Digital wallet.