Saturday, September 26, 2009

Local currency

One of Transition's key mechanisms is to set up a local currency to unify the community, encourage self-reliance and resilience. To this effect i started the Greater Washington Exchange to issue Potomacs. Here Dr Rogate Mshana, economist with the World Council of Churches, purchases the first Potomac at the Forum on Faith, Economy & Ecology, Washington DC, May 3 2009 where i was invited to make a presentation on Transition.

Local currencies are perfectly legal in the US and have usually emerged at times of economic uncertainty. Because earnings cannot leak away from the community and must be spent locally, studies have shown that one unit can circulate up to five times more than the equivalent dollar.

Potomac bill. Other denominations are 5, 10 and 20, accepted at five businesses as of this writing.