Complementary currency is, simply put an agreement within a community to use currency that is non-national as a way in which to pay each other for services delivered for example. It is also sometimes referred to as Complementary Community Currency.
This kind of currency can be implemented in two different ways: Mutual Credit or Fiat Currency.
Mutual credit system is created when two parties trade with each other, simultaneously creating a debit for the one and a credit for the other.
A Fiat currency system is where currency is both created is dispensed by one, designated authority. This is much like normal, national currencies.
Complementary Currency has many goals, but at its heart are that of both job creation and the sustainable development of communities. For this to work, the wealth, thus the currency, must stay within the community.
Complementary Community Currency can help to build up a strong economic environment within the community, helping to alleviate poverty. Another benefit if complementary currency is that it supports the cultures of different communities.
Within communities, the environmental impact can become quite large. Members of the community will start gardening as they see the needs for fresh produce and herbs. As this increases, communities become self sustainable.
Furthermore the reduced use of pollutants is also notable. Things such as transportation are cut seeing as it is not needed. The product is already where it needs to be and this also reduces the cost of the products.
In poverty stricken communities, complementary currency is a very viable option that can help alleviate the economic pressure they are under. By becoming self sufficient, these communities are starting to realize that their saving grace is within their reach.
Not only is the development within communities sustainable, but the entire community benefits from this development. Benefits are not only financial, but social and environmental as well.
By using what is in their reach, communities are changing the way they operate.
Communities are strong and when survival kicks in, relying on sustainable development becomes there only option. They realize that by looking after one another they can benefit greatly.