In economics, a local currency is a currency not backed by a national government, and intended to trade only in a small area. Advocates such as Jane Jacobs argue that this enables an economically depressed region to pull itself up, by giving the people living there a medium of exchange that they can use to exchange services and locally-produced goods (In a broader sense, this is the original purpose of all money.)
Local currencies can also come into being when there is economic turmoil involving the national currency. Social technology has the potential of creating local currency in the form of relational exchanges of information, knowledge and commerce between relationships.
Watch the exchange between David Bullock and I as we discuss the definition of a new currency. Is currency taking on a new definition?
What say you?