Differences between Ğ1 and complementary local currencies (CLC)

Category Understanding the basics

Difference between Ğ1 and CLC Currencies

In most countries, Complementary Local Currencies as authorised by the law are pegged to the national currencies. Each monetary unit of a of a CLC is associated with a national monetary unit on a bank account. These CLC are actually just national currencies dressed up with a local touch. To acquire local currencies one generally has to buy them with a national currency.

To acquire Ğ1, one may sell goods or services, but can also become a Ğ1 co-creator of the currency. 1 unit of CLC = 1 euro, whereas there’s no legal definition for the value of Ğ1 in terms of national currency. When users trade a national currency for Ğ1, they are free to apply the exchange rate they want at the time.

Complementary Local Currencies are not alternative currencies

It is usually not created differently than debt currency: you have to pay one euro (or other fiat currencies like dollars, etc.) to get one unit of local currency, and vice versa. If the euro collapses or suffers inflation, so will the local currency. Using a local currency is not a guarantee that this currency will remain in the local economy. The Euro (local currency of the Euro zone) does not prevent the purchase of products from America or Asia. It is very easy to use local currency in some convenience stores to buy bananas or chocolate from the other side of the world. These stores use the 'local' currency to attract customers and convert a large part of this currency into Euro. Finally, the local currency turns out to be vouchers for a group of stores. If you really want to develop the local economy, it is wiser to look at the origin of the products you buy. You'd rather buy apples in euros from the local farmer than bananas in local currency from the corner store (even organic).

Ğ1 Currency is not necessarily local

Free/Libre Currencies are not necessarily local. That's the case for Ğ1 currency: thanks to its IT infrastructure, it's potentially global. The only brake on its global expansion is the web of trust (whose rules may evolve). Although by its design, it's encouraging community-level exchanges. 

A Free/Libre Currency can be local.

However, it is possible to create a Complementary Local Currency based on the Free/Libre Currency mechanism instead of a fiat currency. One can create a local currency backed by the Ğ1 (or any other Free/Libre Currency when there will be others). Such a currency would be local only in name, as it would be easily convertible into Ğ1, which is potentially an international currency.

One could also develop an independent local currency based on the Relative Theory of Money, the mechanism at the base of a Free/Libre Currency. This currency would be really local, because it would not be easily convertible and would be used only locally. 


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le 03.10.2022 à 11:33:18
Translated by Aurélie
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