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Complementary currency is a hypernym (superordinate) of local currency (also referred to as community currency) and sectoral currency. A hypernym (in Greek υπεÏνÏμιον, literally meaning extra name) is a word whose extension includes the extension of the word of which it is a hypernym. ...
In economics, a local currency, in its common usage, is a currency not backed by a national government (and not legal tender), and intended to trade only in a small area. ...
A sectoral currency is a form of complementary currency that is restricted to a specific sector. ...
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. Scrip is any substitute for currency which is not legal tender, and is a form of credit. ...
A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system. ...
Legal tender or forced tender is payment that cannot be refused in settlement of a debt denominated in the same currency by virtue of law. ...
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. The Ithaca Hour is an example of time-based currency. ...
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. Demurrage (from demur, Fr. ...
Interest is the rent paid to borrow money. ...
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.
See also
This article needs to be cleaned up to conform to a higher standard of quality. ...
Calgary Dollars is a local currency in Calgary, Alberta, Canada. ...
e-gold is, according to their website, 100% backed by gold Digital gold currency (or DGC) is a form of electronic money denominated in gold weight. ...
A private currency is a currency issued by a private institution. ...
Jean Silvio Gesell (March 17, 1862–March 11, 1930) was a merchant and finance theoretician. ...
Bernard Lietaer is an economist and author who was one of the designers of the Euro. ...
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
Complementary, local exchange software and systems design - Cyclos Web based complementary currency system build on Java technologies
- Community Exchange System Global complementary currency system
- Fourth Corner Exchange php web based system
Examples of complementary currencies currently circulating |
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