As the name suggests the local currency is the one that has to be used and is used locally within the country. A local currency is a currency that is spend at a particular area for the particular organizations. Usually the local currency gets the name of the complementary currency. The purpose of the local currency is to support the national currency and it helps to support the national currency by adding its usage along with the local currency. The purpose of local currency is to help spend within a local community preferably within the big businesses like the online companies.
HOW LOCAL CURRENCY IS DIFFERENT FROM THE NATIONAL CURRENCY:
As the national currency of the country is endorsed by its government and the government is the responsible party for taking care of it, the local currency is not supported nor endorsed by the government. The local currency of the country is kind of complimentary currency which compliments the national currency. For example, the national currency of USA is Dollar but the local currency of Varacuz state in North America is Tumin. It can be a source of alternative currency but should not be deceptive in nature and used in place of national currency. Local currency can be used as regional currency in some region or as a private currency by some wealthy individual holding a business, NGO etc.
THE BENEFITS OF USING LOCAL CURRENCY:
The local currency helps in serving various purposes from the sustainability of businesses and other incomes to some of the national purposes. It advances purchasing from nearby stores and from neighbors, keeping occupations here. It encourages the neighborhood creation of a more noteworthy assortment of products and enterprises to meet nearby requests. The local currency empowers utilization of neighborhood assets and nearby creation. The local currency brings about less contamination and less vitality utilized for delivery. The local currency disperses riches all the more equitably. The local currency makes little scale creation suitable while making new occupations at home.
MODERN LOCAL CURRENCIES:
There are over 2500 local currencies operating in the world but some of them are very famous for their usage like
- Transition currency issued by the transition towers in the UK which serves the purpose of the transitioning of the money/ the transition currencies include the Brixton and Bristol Pound in UK and Salt Spring Dollars in Canada.
- Reward currencies based upon the frequent flyer model. This operates in such a way that a person gets rewards by flying. Each time that person is flying he gets the rewards for flying which can then be exchanged for gift vouchers or so. All the flying companies offer this facility.
- Time Based currencies are also popularly used by the Time Banks in the world.
The modern local currencies are also being utilized in almost all over the world in all continents. Some of the Asian countries using local currencies are Kenya, Sangal and South Africa. Some of the American countries using local currencies are Argentino and Credito. Some Asian countries like Japan and China are also utilizing these currencies.
LEGALITY AND SUBSTANTIAL HARMS OF THE LOCAL CURRNCIES:
Since the local currencies are local in nature. They are not endorsed by the government so they are legal but not legalized. It means that it is absolutely legal to use the local currencies but the again they are not endorsed by the government and sometimes be even misused. There are a lot of concerns raised upon the local currencies. Sometimes they are appropriate because they can get in the way of the national currencies. Sometimes they are unable to provide for the aims they intend to. Like in the past the transition town’s community was criticized heavily. This was criticized to not provide for the lower socioeconomic status and the inability to meet the needs of the wider population residing in a large place.