Cryptocurrencies are fundamentally global in nature. Their networks are decentralized and don't care for national borders. But global currencies have a severe disadvantage: Their purchase value can evolve very differently in different regions. The Euro is such an example that is the official currency in many european countires with distinct fiscal policies and economic development. While there are political reasons to favor such a unifying currency, many economists doubt the concept. States with less economic growth have no option of devaluing their national currency. They can only get into debt - and then get forced into austerity, further weakening their economy.
Local currencies on the other hand are mainly affected by local economy.
During the great depression, the austrian village of Wörgl attempted a monetary experiment to fight deflation: A complementary local currency.
|denomination||Schilling (1:1 national currency)|
|issuance||by the muncipality, as partial salary for infrastructure work|
|backing||full reserve in Schilling|
|demurrage||12% / year linear pro rata|
|date||1932 until prohibited in 1933|
- lower unemployment (-16% while elsewhere +19% in 1933)
- 8-10x money velocity
- improved infrastructure: bridge, ski-jump, streets
|denomination||Euro (1:1 national currency)|
|issuance||by Chiemgau association, in exchange for Euro|
|backing||full reserve in Euro|
|demurrage||8% / year linear pro rata|
|reimbursement fee||5% (of which 3% go to local associations chosen by buyers of Chiemgauer)|
|date||2003 until now|
WIR is rather a reciprocal exchange network (barter ring) - but it is an official currency (CHW). It is only open to businesses, not private persons.
|denomination||CHF (1:1 national currency)|
|issuance||by WIR bank as credit (with low interest rate)|
|reimbursement fee||reimbursement prohibited, you have to spend it|
|date||1934 until now|