Create Your Own Currency
Creating your own currency is a dream as old as money itself. This article provides an overview of complementary and alternative currencies, from digital coins to labor-based systems. With creativity and community organizing skills, you too can create an alternative currency. While you may not get instantly rich, you'll be on the right track to making more money. However, there are many obstacles to overcome for both issuers and users before a currency can gain wide acceptance.
Types of Alternative Currencies
Virtual Currencies
Digital currencies like Bitcoin and Litecoin that exist online. Often decentralized and cryptographically secured.
Labor/Barter Systems
Local exchange systems like LETS and Time Dollars where people trade services directly.
Asset-Backed Currencies
Currencies backed by precious metals or other assets to maintain value.
Virtual Currencies
1
Game Tokens
Currencies like Linden Dollars from Second Life that evolved from online games.
2
Cryptocurrencies
Decentralized digital currencies like Bitcoin that use cryptography for security.
3
Corporate Coins
Digital currencies created by companies like Facebook and Amazon for use on their platforms.
Labor and Barter Systems
1
Local Exchange Trading Systems (LETS)
Members earn credits by providing services and can spend them on goods/services from other members.
2
Time Dollars
Volunteers earn credits for time spent helping others, which can be exchanged for services.
3
Hours Programs
Local currencies like Ithaca Hours where one hour of labor equals a set monetary value.
Setting Up a Time-Based Currency
1
Form Core Group
Gather committed individuals to coordinate and run the program.
2
Secure Resources
Find office space, equipment, and volunteers to support operations.
3
Implement Software
Use timekeeper software to manage transactions and member accounts.
4
Recruit Members
Engage the community and local businesses to join the network.
Precious Metal-Backed Currencies
Legal Considerations
Acceptance
Businesses are free to accept any form of payment agreed upon before incurring debt.
Legal Tender
US coins and currency are legal tender for all debts, taxes, and public charges.
Alternatives
No law requires accepting only Federal Reserve notes; alternative currencies are legal.
Keys to Success
Build Trust
Establish credibility and transparency to gain user confidence.
Foster Community
Create a strong network of users and businesses to support the currency.
Innovate
Continuously improve and adapt your currency to meet user needs.
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