I’ve been a big fan of community currencies ever since reading "The Future of Money" by Bernard Lietaer, in 2001.
Since then, I tried to get some currency projects going, but the time wasn’t yet right. It was too hard to explain, or get people interested or motivated, or the software wasn’t yet usable, or there were too many other problems, which I’m going to outline below.
Now it seems that there is a lot of activity in the area. The software is definitely ready for everyday users. I’ve been getting involved and trying to help get something going. I’m struck by a few things that are still problems, for currencies in general, and for me in particular.
First of all, the fundamental problem we are trying to solve is to close the gap between two senses of the word "value". The value in the sense of moral and ethical value, and the sense of monetary value. We live in a psychotic society driven mad by the hypocrisy inherent in our money system: it requires us to value things which are abhorrent, and it desecrates things which we value. So the first thing a community currency system does is– at last!– value things which are actually valuable. This is determined by the community which is issuing the currency, and different communities may have slightly different values, based on who’s in them and what they’re doing. That too is a good thing, if we value (in both senses) diversity and freedom.
Secondly, I’m convinced that no community currency will ever be considered "real money" until it can be used to meet basic human needs like food and shelter and transportation and clothing. When I can pay rent and buy food with my good works done for community currencies, then it will be valued. This is the third sense of "value", meaning– to be desired or wanted or needed. There’s no more tangible way to value someone’s good works helping people than to feed, clothe, and shelter them. These are things that everyone needs. A currency has to offer things that humans need in order to be a real money, and not just a way to track volunteer hours. I’ve been told that too many currency projects end up with people racking up hours but not spending them. This is why: their needs aren’t met by things offered by people who accept community currencies for pament. Get apartments and food and clothing and transportation into the system, and it will thrive. Don’t do that, and you have a toy, ivory-tower project that won’t go anywhere.
Thirdly, I’ve found that I have very little patience for theoretical and “ivory tower” discussions of currency and money– and groups that see it as a toy or a theoretical game. I am a musician and therefore I am poor and I live in a world of dirt-poor, near-starvation people. For me the great hope of community currencies are very much a practical affair: feeding people, keeping people in their apartments, enabling people to have time to work on their craft, keeping them from the crushing despair of a system that views us as less than human. I’ve already stepped back from one community currency project because influential people in its steering group are too far up in the clouds and too lost in perfectionism and a quest for elegance.
Fourth, the greatest danger to community currency projects is its corruption by the fiat currency and fiat financial system. I don’t want anything to do with venture-backed, or otherwise fiat-currency-oriented community currency projects. I backed away from one some years ago because they wanted to charge its members in US Dollars a monthly fee to participate. That’s defeating the whole purpose. I backed away from another one soon afterwards, because it was basically just a front to get grant money (in fiat US dollars) and wouldn’t have solved the problem of detaching from fiat system. And I am still seeing today projects that look like little more than "social networking" Web-2.0-type Facebook bubble scams. But at the same time I can’t condemn them; they have to eat! And this illustrates point #2 above, as well, and in a big way. A currency that will let you buy food– that is backed by basic human needs– will drive out all others.
Fifth– and related to the purism I’m revealing in points #3 and #4 above– is that I find that my personality doesn’t suit me well for community. This is a huge irony since I believe so strongly in community currencies. It’s a potentially terminal irony, if the financial system continues its collapse and communities are all that is left for support of human life. I’m a loner. I don’t work well with others. I can’t stand having to meet social obligations, and I hate to place them on others either. I like to learn, to get answers to questions, and sometimes to get help, but I’m very American and somewhat addicted to self-reliance. I like to go it alone. I do not trust people. I am impatient and often contentious. Not a great recipe for success in community currency projects– and yet the whole path of my life (and indeed, I think, the whole path of civilization if it is to continue as a going concern) seems to be leading me to them.
I need to think this all through quite a bit more, but this is the state of my thoughts at the moment.