Complementary Currencies/BoK EN - Regiogeld

General Description

Regiogeld (regional money) is a group of community currencies being used in several regions and towns of Germany and neighboring countries (Austria, Switzerland, The Netherlands), of which Chiemgauer was the first and largest Regiogeld program. In Regiogeld, the currency is voluntary agreed upon by consumers, associations and businesses. Although, there are some minor design differences between the different Regiogeld currencies, they are essentially the same. All Regiogeld currencies are redeemable vouchers purchased with national currency and redeemable for national currency, which are only accepted locally. Regiogeld can be considered the successor of the Stamp Scrip of the 1930’s, having largely the same characteristics. Just as Stamp Scrip, Regiogeld is a currency that is issued in the form of banknotes and subject to a ‘demurrage’.

Purpose

Stamp Scrip of the 1930’s was usually invented to overcome the problem of a tremendous scarcity of conventional (national) currency and to speed up circulation of money. For the amount of Regio’s to increase, Regiogeld self evidently relies on the availability of conventional currency. Its purpose is therefore solely to strengthen the local economy and to offset the negative effects of economic globalization. Regiogeld aims for strengthening local Small and Medium Enterprises.

‘Regio’s’ are accepted by several participating local shops and businesses only. Because Regio’s are only accepted locally, the currency cannot flow outside the region, pertaining purchasing power, and as such stabilizes welfare within the region (Regiogeld Website Germany 2010). Contrary to conventional currency, regional money, cannot move abroad or into financial market speculation (Economy Point 2010). Regiogeld is designed to help the regional economy by promoting local shops that have to compete against corporate supermarkets and chain stores. “Food shops prefer apples from the region because they can spend their Chiemgauer with local farmers. [As such] Regional business cycles are stimulated and a regional network evolves” (Gelleri 2009: 73). In addition, businesses dispose of a very cost-efficient marketing tool being listed on websites and in advertisements of the Regiogeld organization (ibid: 74).

For local businesses another advantage of accepting Regio’s is that they retain and increase the amount of potential customers. After all, they will attract the members active in the Regiogeld program. Regiogeld, in addition stimulates a sustainable economy. After all, less transportation is involved if products and services are purchased locally (Moore 2007).

For local governments alike, there’s an incentive to support Regiogeld programs. Local authorities will experience higher tax income as the local economy increasingly prospers. They can also apply Keynesian economics. Spend a Euro and after changing hands a couple of times it ends up in the financial market or abroad. Bring Regiogeld into circulation and it will stay within the region’s real economy.