3FOOD

Third Industrial Revolution Consulting Group
regional currencies.
Banks could offer credits in regional currencies with lower interest rates and earn the same
margin than with higher interest rates. This supports sustainable development. Regional
currencies enable the linkage of social outcomes to financial ones. They can enforce regional
deployment of products by binding purchasing power to the regional economy and enable a
self-sufficient sustainable development / circular regional economy. Regional deployment of
products shortens transportation routes, reduces CO2 emissions, brings producers and
consumers closer together and enables social cohesion.
Regional currencies create sensitivity of consumers towards regional production and
consumption. They help creating positive feedback loops of regional exchange. Regional
currencies create cooperation networks amongst companies and offer new companies access
to a network of cooperating companies. They tend to circulate faster and can have a positive
impact on turnover. (Demurrage increases this effect).
All these effects increase the resilience of the companies and the entire ecosystem and help
increase turnover which both could have positive effects on jobs. Another socio-economic
effect would be that regional currencies create more cooperation between the companies of
the networks. Regional currencies can offer new business models for banks, based on exchange
fee charged to convert into standard currency and/or demurrage.
4.4 B2B Complementary Currency
In April 2015, NSNBC International asked the question “Is it time for the rise of local
currencies?” 275 The question is highly consistent with the FWG recommendation to “create a
complementary B2B-focused currency for Luxembourg and / or the Greater Region based on
mutual credit” analogous to WIR in Switzerland, SoNantes in France, and Sardex in Sardinia.
“Mutual credit” means that when a transaction is made between two companies, one “goes
negative” and the other “goes equally positive” on a central balance sheet managed by the
mutual credit organization. These “negative” and “positive” balances are the complementary
money. All “negatives” and “positives” equal zero. This system creates money at the moment of
the transaction, meaning that it facilitates exchange for companies in lack of liquidity or helps
saving standard currency.
The system may be limited to companies working on TIR-related projects or better conditions
could be offered to such companies and organizations. It can be combined with a credit system
275 See: http://nsnbc.me/2015/04/14/is-it-time-for-the-rise-of-local-currencies/
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