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Paris Experiments with Local Currency

2018-02-17 Sat

44 local currencies have been circulating in France, and Paris will soon have its own currency to boost local commerce.

The city government had been working with an organisation called Une Monnaie pour Paris (Money for Paris) to release local currency in Paris this January. Users of these notes will have to create an account through which they can use local currency for daily transactions. The group became operational on 29th March 2016.

The new currency would complement the euro and will not replace it. The group hopes to make France's economy more controlled and sustainable. They also want to preserve the local identity and offer equity in the economy. They believe that this will open new local markets. Business will not be able to leave the city to avoid paying taxes. Money cannot be paid to nonlocal companies either.

The group also claims that the concept is not similar to the private notes issued during Medieval times. The local currencies will have a 100 percent reserve fund of circulating currency. This means that for every unit of local currency, there would be one euro in a fund guaranteed by a banking institution.

Images courtesy of Une Monnaie pour Paris.