You are viewing a single comment's thread from:

RE: Virtual Currencies Starting To Show Up As Stimulus

in LeoFinance5 years ago

The "virtual" regional money from that Spanish Community you described stem originally from the theory of free money ("Freigeld") from Silvio Gesell. I think first time is was successfully implemented in 1932/33 by Michael Unterguggenberger, mayor of the small Austrian town of Wörgl during the severe economic depression back then. Notes were given out for free (acceptable like cash but in the region only) which would loose value over time, so a quick turnover is incentivized. This principle is called demurrage and is actually quite clever! But after 13 months already, the Austrian central bank stopped the experiment. It was too successful and endangered the classical fiat system. There were other examples too (even today there are some like "Regiogeld" (regional money)) and I think we can still learn a lot from these. It could actually be one way out of the hopeless current money system.