A strong movement is forming around the idea of local, complementary or community inclusion currencies. The theory is that if we can create a container within which economic value can circulate, local groups can continue to create and exchange value regardless of the global economic climate. Why should a town or village suffer if some systemic vulnerability causes a downturn in global equity markets? Surely those individuals are still able to create the same value they could before a recession?
Of course, defining a market and its boundaries is a subjective exercise. Boundaries only exist in our minds. They are still real, though, and defining meaningful boundaries allows us to study and understand the dynamics of systems internally, and within a broader multi-system tapestry. I say this while still acknowledging that ultimately all "systems" collapse into one system — the universe, in this moment. Still, drawing distinctions helps us understand patterns.
The collapse of many of our cultural systems into one is more true today than ever before. We can now communicate globally in what is effectively realtime — information can move at the speed of light, and the economy is now truly a global one. This interconnectedness carries opportunities and risks in equal measure, and how we design our systems of value flow has great bearing on the safety, justice and equity of money — whether finance serves to enhance human flourishing or undermine it.
Over the past decades, a rich range of experiments in implementing local currencies has naturally and organically emerged. Rarely are these projects initiated by central governments or banks — they typically are driven by local leaders seeking to enhance the flow economic value within a local community. These community initiatives have been classified as "local exchange traded systems (LETS)", and share common design patterns in their numerous implementations all around the world.
As our digital systems have matured and information technologies have become ubiquitous, irrevocable tools underpinning human society in the 20th and 21st centuries, perhaps the most significant development has been the digitization of finance. Money is finally revealing its true nature: it is fundamentally an information technology. The value of a coin lies primarily in the stamp it possesses, rather than the actual gold it contains. This stamp is data, which carries information about its origin and legitimacy.