Smarter money for smarter cities: How regional currencies can help to promote a decentralised and sustainable regional development

Abstract

This article describes how regional currencies can help improve livelihoods in two key ways. Firstly, they can help promote decentralisation and strengthen the local economy. Secondly, if based on Silvio Gesell’s concept of free money, they can, in the long run, contribute to a more sustainable development. This second aspect is more difficult to understand. Accordingly, the article explains the problems inherent in our economic system—which is based on a banking system in which money supply and debt develop synchronously—problems that are not well understood in economic science. Since regional currency initiatives do not depend on the support of governmental institutions, the article aims to encourage private individuals and businesses to implement regional money, and in this way support a decentralised and sustainable development.