A local currency – also know as a complementary or community currency – is tender which is officially separate from the government’s currency. Complementary currencies are legally classed as ‘vouchers’, but are subject to tax in the same way as cash. Find out if you might benefit from having one. You need to be a subscriber to join the conversation. The Brixton pound launched its paper-based currency in 2009, but it is now also traded through an electronic pay-by-text platform. The Totnes currency, a "complementary currency" intended to supplement sterling, has been going in Devon since 2007, with electronic Totnes pounds launched in 2014.Â. Most banks and providers typically require that you have an active bank account in Sterling, are a UK resident, and are 18 or over. Sainsbury’s is a national chain of supermarkets. Complementary currencies do not aim to replace the national currency, but work alongside it. Both currencies are traded through a free smartphone app called Colu, which acts as a digital wallet for consumers to use in restaurants, shops and other local businesses that accept the currency. The latest to launch is the Lake District pound, which can be spent as of May 1 in more than 200 locally-owned businesses and visitor attractions.Â. Complementary currencies can be backed by the government’s currency (e.g. Usually, the points cannot be exchanged for the national currency, but can sometimes be transferred and used to make purchases or earn discounts from partner organisations. Aim is fast maturing into a grown-up stock market, Boeing pays $2.5bn to settle US charges over 737 Max crashes, Bitcoin crosses $40,000 as record-breaking streak continues, UK Government bought £150m of PPE from Chinese firms linked to Uighur human rights abuses. Get the latest discussions, posts and news straight to your inbox, and be the first to hear when we launch new community tools and resources. Modern local currencies can be classified into the following distinct types: The Liverpool local pound launched at the beginning of the year and currently has 100 businesses and 16,000 users signed up. By rewarding customers with points, discounts or other incentives when they spend money, the customer is encouraged to be loyal to a particular shop, brand or chain and to continue spending money within that system. We are happy to confirm that it still exists, and that a number of special editions have been issued in the past year to celebrate significant events in the town. The Lewes Pound is one of a number of similar local currencies in use throughout the UK. When making purchases the customer earns Nectar Points. Local currencies can only be spent in local stores, or traded privately between individuals. These can later be exchanged for discounts on goods and services from Sainsbury’s, or for vouchers to be redeemed with partner companies such as restaurants, travel companies, hardware stores and cinemas. Easily manage your mortgage and utility bills across currencies with Direct Debit in the UK, Europe and US, and pay tradespeople like a local. For the overseas borrower (and buyer) it reduces foreign currency risk and avoids a variable debt service cost. As of mid-2017, 146 retailers and around 800 people have signed up to the digital currency. Loans can be made in over 60 currencies . This follows the launch of the East London pound last summer and the Liverpool pound in early 2017. Glasgow and Birmingham have also explored a similar idea.Â. Well most of it (80-90pc) leaves the borough within a day, then leaves the county and a lot of it leaves the UK – untaxed! Price List in the Local Currencies Last Updated On: 15 November 2020 * Course books are not included in the fee. It can only be used within a designated geographic area. In the UK alone, Totnes, Lewes, Brixton and Stroud – all Transition Towns – have their own local currencies. prior to buying the bond. Often, in these closed currency countries the restrictions can lead to the creation of black markets to exchange the weaker local currency for stronger currencies such as the Euro, UK £ and US $. Millennials' distrust of British banks, and a growing interest in supporting local communities, has helped spawn a new crop of local digital currencies. Complementary currencies can take a wide variety of forms to adapt and fit specific needs, but the main features of a complementary currency are that it earns zero or negative interest, it often comes with an expiry date, and its circulation is limited to a local ‘community’. Kingston launched its own digital currency in early 2014 as a way to save its high streets and shopping parades and keep money circulating around Kingston borough. As with the Lewes Pound example, its purpose is to keep money flowing within a particular network of businesses. Who are multi currency For example, a city might have unemployed or underemployed workers, unfilled hotel rooms, half-empty restaurants, and unused productive Incentive schemes can include local businesses offering discounts for payments in local currencies, or discounts offered when currency is purchased. Its website states: "Have you ever wondered what happens to your cash when you spend it in Kingston-upon-Thames? Get paid Sometimes the currencies are electronic but others take the form of physical vouchers. More than £1m Bristol pounds have been issued since its launch, and it can be used at more than 800 businesses across the city and wider area. You can spend the notes in more than 100 local businesses, and when residents buy with Totnes pounds they are rewarded with loyalty points that can be redeemed on future purchases or donated to a local charity. Topical articles Banknotes, local currencies and central bank objectives 319 United Kingdom abandoned the gold standard and adopted a fiat currency (that is, money by government decree) in 1931. Local currencies are common around the world - there are more than 10 in the UK. In June, the east London pound was launched, which currently has around 2,000 members and 70 businesses. Learn more. T he Bristol pound was launched in 2012, and is perhaps the biggest local currency in operation in the UK. Josh Ryan Collins, of … For example people can buy Bristol pounds by paying UK pounds for them. We use a debit card with zero charges and in 2 years, we’ve not had a single banking charge for accessing our cash abroad or on our transactions. Local currencies empower a community to maximize its use of productive resources. Hull has its own local digital currencythat can be earned from volunteering and used to pay council tax. Email customer.service@ukexportfinance.gov.uk or call +44 (0)20 … From this point on, the Bank of We rely on advertising to help fund our award-winning journalism. They encourage local spending, reduce carbon emissions and strengthen communities. Local currencies are not a panacea for all our economic woes but they could help lift some of the fug that surrounds our high streets. UK local authorities owed £81.8bn in the financial year 2011-12, costing hundreds of millions in interest on repayments. Reuters.co.uk for the latest World, UK, Local, and Business news, along with up to the minute coverage of politics and investment news. Customers of Sainsbury’s are encouraged to sign up for a Nectar Card. The currency can be purchased at a rate of one Lewes Pound to one Pound Sterling, but it can only be spent in a certain number of participating local retailers in the town of Lewes. This article is a list of community currencies that are, or have been, used in the United Kingdom.There are various models such as complementary currencies, local currencies, Local Exchange Trading Systems (LETS) and Time-based currency: The currency is valid only with participating retailers. Find out more, The Telegraph values your comments but kindly requests all posts are on topic, constructive and respectful. When the Brixton pound launched in 2009, its founders said it would "stop 80p of every £1 spent locally from leaving the area.". As a UK company, you can open a multi currency business account. According to Colu, consumers and merchants get more for their money if they use the the local currency to buy goods, by taking advantage of locals-only offers and discounts. Regiogeld , a network of local currencies in Germany, is now the world’s largest system of local currencies, supporting small businesses and empowering communities. UKEF can guarantee a buyer credit loan to an overseas borrower in local currency, financing the purchase of capital goods, services and/ or intangibles from a UK exporter. Currency in the UK remains unchanged by the European referendum of 2017. Residents are able, at any time, to exchange their Lewes Pounds for Pounds Sterling, and vice versa. A buyer credit in local currency follows the same format as a conventional buyer credit in a standard currency such as sterling, euros or US dollars except that it is funded from a bank in the b… Join Means of Exchange and help us move this important conversation forward. Glasgow could be next. In this case, the investor will have to convert dollars to foreign currency, such as the Brazilian real, prior to buying the bond. Multi-currency accounts let you keep money in one or more currencies other than pounds. The official currency of England, Wales, Scotland and Northern Ireland is the pound sterling (£), often abbreviated to GBP. Local currencies have been around in the UK for more than 10 years, introduced by cities and regions across the country in order to protect local businesses and support the community and its residents. The currency often resembles the national currency, but with local celebrities featured on the designs. The scheme was devised to "support and build diversity and resilience in the local Brixton economy in light of difficult economic times". The Lewes Pound is one of a number of similar local currencies in use throughout the UK. Available in LD£1, LD£5, LD£10 and LD£20, each note features well-known places and people from the Lake District, including Beatrix Potter and William Wordsworth. The time to think creatively about our economy – and local currencies – has arrived. Totally, there are 164 official national currencies circulating around the world. Zimbabwe's government has taken the controversial decision to ban local trading in foreign currencies, including the US dollar, with immediate effect.The move has … See more ideas about Currency, Locals, Transition town. To find out more about Local Currency Financing or to discuss eligibility for our support, contact our customer services team. The most common form of local currency implemented in alternative initiatives today involves merely substituting a new note to be used instead of the existing normal/national currency. In Britain, there are now schemes in Totnes, Lewes, Brixton, Bristol and Exeter. If you're planning a trip around Ireland, however, you need to be aware that the Republic of Ireland uses the euro (€), not the pound. Some local currencies have struggled; the Stroud pound, for example, appears to no longer be trading. But there are other local currencies that are still successful today. Totnes have offered Totnes pounds for £9.50, and printed £21 notes costing £20 Sterling. Bonds that are denominated in local currencies rather than U.S. dollars are the second type of emerging market debt. In 2014, Hull City Council launched the Hullcoin – the first UK local government operated cryptocurrency – with the aim of fighting social injustice and poverty. Kingston, Birmingham and Liverpool have schemes underway. one hour of work = 10 Local Points). How ‘piggy bank’ got its name, and announcing Global Money Week, ‘Doing time’ with prison-linked time banking, #BuyNothingDay counters UK ‘Black Friday’, Cambridge Skills Exchange: “A different kind of energy is created”, Encouraging people to support their local businesses and become aware of the importance of supporting the local economy, Reducing transport for goods, and in turn reducing the town’s carbon footprint. We urge you to turn off your ad blocker for The Telegraph website so that you can continue to access our quality content in the future. Every paper £B is backed up by pound sterling deposited at Bristol Credit Union, which is regulated by the FCA. Hold more than 50 currencies in one place. The currency can be purchased at a rate of one Lewes Pound to one Pound Sterling, but it can only be spent in a certain number of participating local retailers in the town of Lewes. These benefit from the increased custom, as people use credits to get discounts on purchases. Sterling is paid in, and local businesses take payments in the local currency. Read our community guidelines in full, The LD£ is available in 1, 5, 10 and 20 notes, The B£10 features the face of Brixton-born David Bowie Â, A £1, £5, £10, and £20 Bristol pound note, The Totnes currency is a 'complementary currency' intended to supplement sterling, David Bowie 'Brixton bank notes': face value £10, eBay price up to £45, The best of Telegraph Business | Get our daily morning briefing, Kwasi Kwarteng appointed as new Business Secretary, Deutsche Bank to pay over $100m to settle bribery charges, Late tax return fines may be waived to help small firms and freelancers, Self-employed directors ramp up plea for Treasury support, Brexit red tape threatens Percy Pigs supply as Marks & Spencer sales slide, Barratt restores dividend as home sales jump, Resilient German economy leaves France in the shade, Poundland mothballs 44 stores as shoppers stay homeÂ, Major Facebook advertisers will be pressured to resume boycott after Capitol chaos, Heathrow boss says pre-arrival Covid tests must be temporary, Future of work: The taxi driver and waiter, One in four people to work from home permanently, US set for stimulus growth surge after Democrats capture the Senate, Questor: The ‘Wild West’ of investing? Receive payments from tenants. The creators of the complementary currency will decide the value of the currency, and where and how the currency can be exchanged. More than £1m Bristol pounds have been … Local currencies work just like pound sterling, with every local pound equivalent to one standard one. Loyalty cards, air miles and discount vouchers are all examples of businesses using the concept of complementary currencies to increase profits or market share. The Bristol pound was launched in 2012, and is perhaps the biggest local currency in operation in the UK. local currency definition: the currency that is used in a particular country: . Around 250 businesses currently accept paper Brixton currency and approximately £50,000 worth of Brixton money was traded digitally in 2016, with around 1,000 regular users of the currency.Â. MPs will debate calls for foreign currencies to be made legal tender in the UK to protect savers and increase consumer choice. Community currencies are often used in order to promote local businesses, to reduce the environmental damage of transporting goods, and to boost pride in the local area. But the notes aren’t legal tender – local currencies are only legal as vouchers, meaning there’s no obligation for shops to accept Means of Exchange: Reconnecting communities with local business, local resources, and each other. The points are not legal tender but are instead legal vouchers entitling the customer to specific rewards. The Nectar Points cannot be redeemed for Pounds Sterling. The currencies are typically pegged to sterling, but can only be traded in shops and businesses in the local area. The Lewes Pound was introduced in order to ensure that money circulated within Lewes, and was not siphoned off by large national chains who didn’t reinvest their profits back into the local area. Complementary currencies are designed to keep money flowing within a particular geographic region, or within a certain network of businesses or individuals. However, as councils allow businesses and individuals to pay local taxes in these currencies, the money stays in and benefits its area of issue, in a self-sustaining feedback loop. Currencies like the Bristol Pound and Brixton Pound in the UK, Toronto Dollars and Salt Spring Island Dollars in Canada, and Berkshares in the US are all based on this model. Jun 28, 2018 - Explore Mike Press's board "Local Currencies", followed by 286 people on Pinterest. Community currencies are often used to keep money flowing within a particular town or city. Local currencies can be found all over the UK. It allows residents of Hull to earn virtual coins for recycling or taking part in community projects, which can then be spent in local businesses. ", Currently, around 100 hundred people have K£ accounts, which are administered by SurreySave Credit Union, and since 2015 more than £8,000 has been spent using Kingston pounds.Â. The scheme aims to improve the economic, social and environmental situation of the city by: See also: The Lewes Pound, The Totnes Pound, The Bristol Pound, Transition Towns. * Payment can be accepted by bank transfer … The purpose of Nectar Points is to encourage customer loyalty by rewarding customers who spend their money with Sainsbury’s, or their partners. CLARIFICATION: An earlier version of this article said that the Lewes pound appeared to be no longer trading. 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