Bitcoin's Rise Signals Growing Interest in Alternative Local Currencies
The ascent of Bitcoin highlights doubts surrounding global financial systems and a growing interest in local exchange mechanisms. Economic anthropologist Keith Hart observes that the distinction between formal and informal economies is becoming increasingly blurred, particularly in Spain and Greece, where informal practices are reemerging. Ken Banks, the founder of a global economic self-sufficiency initiative, asserts that straightforward technology is improving the coordination of economic activities. While Bitcoin serves as a prototype for 'new money,' alternative currencies such as the Brixton Pound (2009, South London), Bavaria's Chiemgauer, and Damanhur's Credito are also gaining popularity. Spain's BilboDiru project is the latest, exploring names like 'hazi' and 'bertoko.' Banks critiques existing software for being overly complex and expensive, advocating for technology that empowers local economies.
Key facts
- Bitcoin has jumped from technical curiosity to mainstream financial news, following the trillion-dollar platinum coin.
- Growing skepticism about global financial systems' long-term viability is driving interest in alternative currencies.
- Economic anthropologist Keith Hart coined the phrase 'informal sector' and notes the blurring line between formal and informal economies.
- In Spain and Greece, informal practices have re-emerged as a 'formal informal' market.
- Ken Banks, founder of a global initiative for economic self-sufficiency, says simple technology accelerates the formal-informal connection.
- Physical alternative currencies include the Brixton Pound (2009, South London), Bavaria's Chiemgauer, and the Credito used by the Damanhur eco-community in Northern Italy.
- The BilboDiru project in Spain's Basque country is creating a new currency, with names 'hazi' and 'bertoko' in consideration.
- Banks criticizes current software for being too technical and expensive, advocating for leading with the problem, not technology.
Entities
Artists
- Keith Hart
- Ken Banks
Institutions
- Brixton Pound
- Chiemgauer
- Damanhur eco-community
- BilboDiru
- FrontlineSMS
Locations
- Spain
- Greece
- Britain
- US
- South London
- Bavaria
- Northern Italy
- Basque country
Sources
- Quartz —