What is an alternative currency?

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alternative currency concerns any type of currency used by a group of people that differ from national or international standard. This is often used by local governments or people as a way of stimulating the Moribund economy. One of the most common forms of alternative currency is a mutual loan in which two people use a credit system independent of the bank or other financial institution. The use of such a currency is usually limited, because it would only be admitted to the place in which it was created.

In the modern world, people use a currency, such as the dollar in the United States or Euro in Europe, to determine the standard to mitigate the process that is purchased and sold. Before such monetary systems were designed, people used simple exchange systems to trade with each other. This type of simple trading system can be quoted as the predecessors of all alternative monetary initiatives that appear in the modern world.

Using alternative currence often matche with the economy that fights. For example, a city with a large percentage of its work from work can devise a system by which hours spent in helping housework doing housework, and such can be used to buying local levels. This is an example of time -based currency, which is one of the most common forms of alternative methods used by local groups.

It is clear that the disadvantage of such a system is that it is not good for citizens who are trying to expand their use outside the locality. Usually the use of alternative currency decreases as an economy, because people in the city or local community can then obtain a currency that is used at national level. It is important to note that in most cases there is nothing illegal to create a currency form different from the norm, but any attempt to hand over such a currency as a legal payment at a greater level would prove futile.

much belowThe Nursery offers consumers an alternative currency as a way to reward loyalty. For example, a sandwich store could provide a customer with a card that can be ran down every time they buy a sandwich to get more rewards in the store. This card becomes a currency in the store. One of the most visible alternative currency methods is the practice of airlines offering frequent leaflets to repeat customers, as these miles become valuable as a way to earn customers cheaper flights.