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A complementary currency is a currency or medium of exchange which is not a national currency, but which is thought of as supplementing or complementing national currencies. When speaking about complementary currencies, a number of overlapping and often interchangeable terms are in use: Many private currencies are complementary currencies issued by private businesses or organizations.
Other terms include alternative currencyauxiliary currencyand microcurrency. Mutual credit is a form of alternative currency, and thus any form of lending that does not go through the banking system can be considered a form of alternative currency.
Barters are another type of alternative currency. These are actually exchange systems, which only trade items; thus without the use of any currency whatsoever. Finally, LETS is a special form of barter which trades points for items. One point stands for one worker-hour of work. Complementary currencies are often designed intentionally to address specific issues, for example to increase financial stability. They can be useful for communities that do not have access to financial capital, and for sardex alternative currency like bitcoin peoples' spending behavior.
Some alternative currencies devalue rapidly they are called Schwundgeld ; this increases monetary circulation. Local currencies also have the benefit that they cannot be spent abroad, and thus the money always keeps circulating locally, benefiting only the local economy.
Alternative currencies are reported to work as a counterbalance for the local economy. They increase in activity sardex alternative currency like bitcoin the local economy slows down, and decrease in activity sardex alternative currency like bitcoin the local economy goes up. As a commercial tool within a business, as opposed to a geographical social tool, a complementary currency can open a business up to a preferred source marketplace whereby they can sell their otherwise devalued or worthless spare capacity in exchange for the complementary currency.
Alternative currencies promoted as local currencies that cannot be spent abroad have limited use. Lengthy use of a local currency will ultimately result in a decline in economic activity and lead to a destabilization of the economy. This is due to the increased circulation velocity of sardex alternative currency like bitcoin money as the amount in circulation decreases as currencies as Freigeld reduce in value rapidly. Often there are issues related to paying tax. Some alternative currencies are considered tax-exempt, but most of them are fully taxed as if they were national currency, sardex alternative currency like bitcoin the caveat that the tax must be paid sardex alternative currency like bitcoin the national currency.
The legality and tax-status of alternative currencies varies widely from country to country; some systems in use in some countries would be illegal in others. Complementary currencies describe a wide group of exchange systems, currencies or scrips designed to be used in combination with standard currencies or other complementary currencies.
They can be valued and exchanged in relationship to national currencies but also function as media of exchange on their own.
Complementary currencies lie outside the nationally defined legal realm of legal tender and are not used as sardex alternative currency like bitcoin. Rate of exchange, scope of circulation and use in combination with other currencies differs greatly between complementary currency systems, as is the case with national currency systems.
Some complementary currencies incorporate value scales based on time or the backing of real resources gold, oil, services, etc. A time-based currency is valued by the time required to perform a service in hours, notwithstanding the potential market value of the service.
Another type of complementary monetary systems is the barter, an exchange of specific goods or services is performed without the use of any currency. Inthe most widespread auxiliary currency system, the Local Exchange Trading Systemswas created. It regulates the exchange of goods and services between the members of the cooperative.
The sardex alternative currency like bitcoin fee paid by the new association members is subsequently directed toward investments in a variety of commercial projects. Some complementary currencies take advantage of demurrage fees, an intentional devaluation of the currency over time, like negative interest. This stimulates market exchanges in the devaluating currency, propagates new participation in the currency system and forces the storage of wealth hoarding ability usually reserved for currency into more permanent and better value-holding tools like property, improvement, education, technology, health, equity securities, etc.
Monetary speculation and gambling are usually outside the design parameters of complementary currencies. Complementary currencies are often intentionally restricted in their regional spread, time of validity or sector of use and may require sardex alternative currency like bitcoin membership of participating individuals or points of acceptance.
There are some complementary currencies which are regional or global, such as the Community Exchange SystemWIR and Friendly Favors, Tibex in the Lazio region in Italy or the proposed global currency terra. A community currency is a type of complementary currency that has the explicit aim to support and build more equal, connected and sustainable societies.
A community currency is designed to be used by a specific group. Lietaer has argued that the world's national currencies are inadequate for the world's business needs, citing how 87 countries have experienced major currency crashes over a year period, and sardex alternative currency like bitcoin for complementary currencies as a way to protect against these problems.
From Wikipedia, the free encyclopedia. NuBits — the world's first stable value digital currency. Ven — a digital currency used in Hub Culturea private social network  WIR Bank — founded inoriented towards small and mid-sized corporations. Retrieved 18 June Community, complementary and local currencies' types and generations" PDF. International Journal of Community Currency Research.
Retrieved 3 April sardex alternative currency like bitcoin Rietaer, "Global Complementally Currency: Community Currencies in Action. Retrieved 17 June Currencies, Profit, and Long-Term Thinking". Retrieved 20 March Retrieved 28 August Proof-of-authority Proof-of-space Proof-of-stake Proof-of-work. Dogecoin Gulden Litecoin PotCoin.
Dash Decred Primecoin Auroracoin. IO Gridcoin Nxt Waves. List of historical currencies Barter Alternative currency. Retrieved from " https: Local currencies Monetary reform Alternative currencies E-commerce Cryptocurrencies.
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