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Originally Posted by Kensington  Yes, but the IOU would be issued in exchange for national currency. It is a way for a business to get a loan from its customers if the banks do not lend. It is not really an alternative money supply.
The transition Town movement is introducing several local currencies in England. I don't really support their ideas so far. First of all, you have to buy one alternative 'pound' with a normal pound. One is simply swapping national currency for local currency. The idea is that the novelty factor will encourage people to spend more in the local area.
Secondly, the alternative pounds are not acceptable for taxes. History demonstrates that a currency must be accepted as payment for taxes or other state charges if it is to survive.
The most successful so far. We should look at that more than the others. It is similar to the scrip currency issued by Franklin's Philadelphia and the Greenback. |
You would be issueing the IOU denominated in Hours of Work, which is all you have got, you value it at 10 euros.
The efforts where the local currency is exchangable for sterling at a fixed rate are of no real benefit as they are just examples of currency boards.
Forget about the greenback in this discussion. The aim of the local currency is to avoid the government.