Local Currency for Community Development: Policy Barriers and Support
Abstract
**Please note that the full text is embargoed** ABSTRACT: Local currency holds promise for relieving poverty while enhancing
social capital and helping communities meet goals. In spite of this,
governmental policies have created barriers to its full success. This
article examines local currency from a community development
perspective, reviews the policy environment in the United States,
and identifies policy changes that can support local currencies.
Four major types of local currency—proxy, fiat, local exchange
trading systems, and time banks—are described. Federal policy
barriers in the US Constitution, statutes, and tax regulations as well
as state prohibitions to local currency are examined.