My city's so cool, its got its own currency

[ChobiChibi]

Behold! (http://www.bbc.co.uk/news/uk-england-bristol-16852326)

I don't know what to make of this. I really can't see it being practical in any way. I guess it's cos I travel quite a bit and don't tend to use the independent traders Bristolians are apparently in love with. I think I'd like to own some notes, just for shiggles.

Here's the site that explains how it works. (http://bristolpound.org/index.php?com=pages&page=16)

Opinions? Cider?

[kurai]

Lots (http://en.wikipedia.org/wiki/List_of_community_currencies_in_the_United_States) of (http://www.complementarycurrency.org/ccDatabase/les_public.html) cities (http://www.ithacahours.org/) do things like this. With this system, you have a 5% exchange fee for conversion back into the national currency and the ability for local employers to "pay a small proportion of wages in Bristol Pounds to willing employees".

Since there is a penalty involved with escaping Bristol, this probably isn't a workable idea. Say it is a success and a large amount of local business for one firm is conducted in the new currency, but its workers decline to be paid in the same (which they are within their rights to do, of course - and why would you accept scrip when trends indicate a shift to global e-commerce?). So you have a pretty significant tax on meeting payroll (not to mention negotiating with non-local production).

Voluntary alternate currency is a pretty old idea. The Utopian Socialists were a pretty big fan of credit schemes to allow for personal negotiation between labourer and the owners of the means of production (to acquire their products). So you could also consider the downfall of Owen's co-operatives after the 1830s - trade in the new currency was fixed to a limited amount of possible avenues (based on voluntary submission), and so only the best goods available were actually traded: the rest sat in warehouses. In the same way, the 5% conversion penalty limits the possible liquidity of the Bristol pound - volunteering to be a part of this scheme ensures that the participants wait for the most advantageous conditions before actually acting... which makes it not a very good currency for real conditions of use. I guess.

[Blademaster]

What's the exchange rate like?

[MeLoVeGhOsTs]

Cider.

[Mikachu Yukitatsu]

The next thing that happens is that Northern Finland, i.e. Finnish Lapland, claims independence, and with the good old Paavo Väyrynen as their president, they get rid of Euro and take back Finnish Markka. As a result... practically nobody cares.

[Becky]

Neat. Also... Cider reminds me of FFVI, where you have to being the guy his cider to make it through the city. :)

[Telume]

I don't think this'll happen in the USA. My neck of the woods already tried it back in 1860 and it ended badly :(

[homeofmew]

I can see this having a ton of issues like the money being over printed or the money having more value then the normal currency. Bit it's a good idea if the city has it own reserve.