Until the late 1800s globally localized currencies were a very common occurrence. It wasn’t until the United States created the National Banking Act of 1863 that this really began to change globally, and it major boosts for national currencies didn’t happen until after the creation of the federal reserve bank in 1913.
These days, although some nations still have localized currencies, they are almost a thing of the past. Or at least that the way things were until cryptocurrency began to catch public attention in the last couple of years.
Whereas many claim that bitcoin will become a single one world global currency, there are many other things taking place that may show the exact opposite is taking place. Instead of global currencies or national currencies, cryptocurrency is moving things back to more localized currencies in many areas.
Cities across the world are pushing a global economic revolution with the creation of what is being deemed as civic currencies or social currencies. These are basically sub-currencies to a national currency that are being used as a supplement to national currencies.
The latest to join this economic revolution are the cities of Barcelona and Berkeley with the announcement they are creating their own cryptocurrencies that will be able to be used locally as legal tenders.
The cities, pay their civil servants either partially or entirely with these currencies. For example the Mayor of Bristol is paid entirely in Bristol Pounds which is both a local paper and digital currency.
These localized digital currencies and cryptocurrencies can be used for paying taxes, purchasing services, and for paying other similar services. The purpose of these local currencies, is to help the local populations with civil problems they are facing.
St. Lawrence Market and Gerard Square areas of Toronto in Canada does something similar as well. They have Toronto dollars which are equal entirely to Canadian dollars. To encourage local residents to use the local currency instead of the national currency, ten percent of every Toronto dollar spent is used to help the homeless, the unemployed and to invest in community based projects.
These city-wide initiatives are not lacking but rather picking up the basse across the globe. Berkley california is using blockchain technology to issue city municipal bonds that are entirely funded through Initial Coin Offerings (ICOs).
Barcelona is using such efforts to encourage local involvement in politics in rural areas by offering these as an incentive to get involved with politics.
Madrid and Paris are using them to get citizens to participate in crowdlaw where participants help in policy making.
Everyday more and more of these localized currencies are being embraced by cities and townships all over the globe and more and more uses are being developed.
It is incredibly possible, that in the quest to move forward to better economic times, cryptocurrency is also bringing us back to a day when federally used money was less important and localized currencies were considered the social normal.
If such a trend continues, one can only wonder how long it will be before each territory and each state begins to once again issue their own currencies based on these new blockchains and allow the local currencies to only be overshadowed by national currencies for federal purposes instead of common usage.