Brixton banks on community currency to boost local economy 1

Brixton banks on community currency to boost local economy

It’s an atypical boast for a new save. However, folks who pop into the outlet just off Brixton’s excessive avenue for a few Portuguese custard tarts can be in – its miles claimed – the simplest keep in Britain that doesn’t receive sterling.

The declare becomes clearer with context. The shop is the modern-day development within the Brixton pound project, the community currency this has been operating for over five years.

With the slogan money that Sticks to Brixton, the Brixton pound is one of the maximum installed of a sequence of local currencies stoning up across Britain in the latest years. The concept is that neighborhood money may be saved within the neighborhood economy, strengthening small companies and creating a greater experience of network spirit.

While the machine of network foreign money is going again to Victorian instances, there has been a resurgence. Generally, one pound sterling is exchanged for one pound of the neighborhood foreign money and then spent inside the area, typically in taking part shops that aren’t chains and have neighborhood roots.
Brixton banks on community currency to boost local economy 2
In Brixton, some 250 businesses participate within the scheme that makes use of each paper and electronic “moneyâ€. A lottery scheme was later released, with the winners going away with 1,000 Brixton kilos.

“Cash is this sort of nebulous concept for many people. It’s miles constantly going to be hard to shift human beings’s behaviors closer to the use of some other sort of money due to the fact human beings think of cash as a singular concept – it is simply cash, it isn’t always ‘neighborhood money’, ‘virtual money’,†says Tom Shakhli, manager of the scheme. “I suppose it’s far normally [used by] individuals who perceive with one-of-a-kind values: pleasure in Brixton, or a moral mindset, or certain political views.â€

other than customers buying objects together with coffees from collaborating shops, an interconnecting network of organizations uses the Brixton pound to pay for offerings inclusive of internet design from local experts, or personnel nights out, says Shakhli.
In Bristol, a few 1.3m of the vicinity’s neighborhood currency has now been issued. People can exchange their sterling for five, 10, or 20 denominations as part of the gadget, which has been in use because 2012. Some 800 businesses within the town now receive the community forex for objects, including coffees, meals, council tax, power bills, train tickets, and even pole-dancing instructions.

“Just the usage of it makes humans feel extra linked to their network or have a feel or become aware of with the metropolis usually,†the forex’s co-founder, Ciaran Mundy, says. He says this affects people’s feel of well-being.

“The values embedded inside the Bristol pound are totally exclusive to the values in ordinary sterling. Whilst human beings consider cash, they tend to reflect onconsideration on what they could get from the state of affairs. We have embedded very one of a kind values within the Bristol pound, which connects you to the network.â€

Council tax can now be paid in Bristol Pounds, and Mundy hopes to see extra of this cash spent with neighborhood corporations, in impact growing a complete stream of use.

In operation, the paper notes are non-redeemable vouchers that expire and can be spent only with buyers who take them and can not be swapped for cash at a financial institution. Digital foreign money is regulated like sterling and handled similarly in debts. The consequences of the community-orientated approach to cash alternate are particularly evident in the town’s restaurant zone, wherein neighborhood growers who sell to neighborhood restaurants use the Bristol pound. The city’s mayor, George Ferguson, is paid absolutely in Bristol pounds.

The Bristol and Brixton currencies have attracted attention both nationally and across the world. Extra than 20 groups are running on like-minded projects. In Spain, a coalition of leftwing events in Barcelona inspired the Bristol model to propose similar foreign money to advantage small and medium-sized agencies.


I am a writer, financial consultant, husband, father, and avid surfer. I am also a long-time entrepreneur, investor, and trader. For almost two decades, I have worked in the financial sector, and now I focus on making money through investing in stock trading.