Tag Archives: local currency

Wörgl: the miracle of a local currency

The Miracle of Wörgl

Legend has it that in the midst of the Great¬† Depression, the mayor of the city of W√∂rgl, in Austria, issued a new currency… which depreciated every month by 1% due to the so-called rate of oxidation! That currency was a “Certified Compensation Bill”, a form of local currency best known by Stamp Scrip, or Freigeld.

What followed was wonderful: the currency got into circulation, unemployed people got back to work, local businesses reopened, and in order to avoid losing money a high percentage of citizens spent the currency very fast, local government projects could be all completed … The implementation of the currency resulted in a growth of employment and prosperity, creating a virtuous circle. More surprisingly, inflation and deflation were not detected during the experiment…. Believe it or not, it all happened during the worst economic crisis of the century!

The W√∂rgl currency was an application of the monetary theories of the economist Silvio Gesell by the town’s then-mayor, Michael Unterguggenberger

Legend has it that in order to reverse the crisis, other cities tried to replicate the Wörgl model, but the National Bank of Austria decided to terminate the experiment on September 1, 1933.

Oracle has it that someday, a developer will find the code that will make the worldwide issue of a W√∂rgl-like digital currency possible. This day will change economy as we know it, forever. It will mean a complete turnabout. Just imagine a currency that rewards you¬†‚ÄĒor can even make you rich‚ÄĒ for spending it quickly! (see the last paragraph of this post).

Wörgl currency

A significant problem about cryptos is that holders prefer to keep them as a store of value in the hope that their price will eventually increase.¬† As a result, they are not brought into circulation to conduct transactions between consumers and businesses. Whereas it is true that potential buyers wouldn’t find a depreciating crypto particularly¬† appealing, it is also true that an additional reward for spending it quickly ‚ÄĒe.g., the quicker you spend it the highest refund you get‚ÄĒ could solve the question.

To be honest, I’ve actually published this post as if it were a message in a bottle. Maybe someone will be able to put the puzzle together and come up with a fundamentally different crypto based on the W√∂rgl experiment. I really think it would make a difference.

PS: It is necessary to modify the source code of a suitable crypto (or else create a new Blockchain from scratch incorporating a rate of oxidation ) so that the resulting currency both depreciates each month and offers an added incentive to encourage people to spend it. An extra motivation for those who spend it faster could be to participate in a daily lottery or raffle, so that you could actually win a small fortune every day by spending¬† your currency quickly! Such process could be automated through a Smart Contract. Please, share. We need to find that coder ūüėČ

For further information visit Coinsweekly

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Moneda social – Social currency

Daily Tip: Moneda social, Social currency

Una moneda social es una herramienta generada y utilizada por colectivos, comunidades y particulares para facilitar los intercambios de productos, servicios, y conocimientos.

El t√©rmino tambi√©n puede ser entendido como la totalidad de los recursos reales y potenciales que se derivan de la presencia en las redes sociales y las comunidades , ya sean digitales o f√≠sicas. El concepto tiene su origen en la teor√≠a del capital social, de Pierre Bourdieu y pretende aumentar el¬†sentimiento de comunidad, as√≠ como la concesi√≥n de acceso a la informaci√≥n y al conocimiento. Funciona como un medio de cambio no especulativo y no como un dep√≥sito de valor.¬†Bernard Lietaer define la moneda social como ‚ÄúUn acuerdo dentro de una comunidad de usar algo como medio de intercambio‚ÄĚ.

Este tipo de moneda no depende de un banco central, y de momento no pretende reemplazar a las monedas de curso legal m√°s oficiales (euro, d√≥lar, peso…). En su √°nimo est√° dar la oportunidad a los ciudadanos de tener sus necesidades b√°sicas cubiertas, lograr una econom√≠a sostenible¬†no especulativa, una mayor cohesi√≥n social y a menudo la conservaci√≥n del medio ambiente.

Suelen ser sistemas comunitarios de vecindad basados en la confianza recíproca. En contextos de crisis económica han demostrado ser un medio eficaz para dar cobertura a personas que se encuentran en exclusión social o en peligro de caer en ella.

Paradójicamente, el hecho de que sólo exista una moneda de curso legal, sin otras alternativas, puede ser un factor de inestabilidad, ya que nada asegura que las autoridades responsables de su emisión y gestión implementen una buena política monetaria. Por lo tanto, en caso de que dichas políticas no favorezcan la cohesión social, no existe otra opción.

Cuando esta moneda cuenta con un respaldo institucional su implementación suele funcionar muy bien. En este sentido en 2017 se quiere lanzar una moneda social en Santa Coloma de Gramanet (provincia de Barcelona). La ciudad condal también está barajando esta posibilidad.

Noticia el Peri√≥dico: Santa Coloma tendr√° su propia moneda digital el a√Īo que viene

Noticia el Pa√≠s: Barcelona contar√° con una moneda social propia pese al recelo del banco de Espa√Īa

‚ě≤ Glosario ¬∑ Glossary

Moneda social: Social currency  No especulativo: Non-speculative Banco central: Central bank  Curso legal: Legal tender  Economía sostenible: Sustainable economy  Cohesión social: Social cohesion Exclusión social: Social exclusion

Noticia Washington Post: In Spain, financial crisis feeds expansion of a parallel, euro-free economy (Financial Times)

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