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Mobile Application for Virtual Community Based Complementary Currencies
Central Idea
Develop a mobile phone m-banking application aimed enabling the creation of community based complementary currencies. Using open-source software, FrontlineSMS, the application would operate in much the same way as Wizzit and mPesa.
Stage One
Develop the software application. The application will be built on the FrontlineSMS software and modeled around the existing m-banking interfaces such as Wizzit (http://www.wizzit.co.za) and mPesa (http://tinyurl.com/6es5q8)
Stage Two
Create a complementary currency in a poor community, urban or rural, in South Africa using the mobile application.
A complementary currency is a currency that operates in conjunction with the national currency it does not replace the national currency, rather they merely create additional opportunities for the real economy to operate in times of greatly reduced credit and financial liquidity (for example poor communities with under-employment)
The idea, implementation and value of a creating a community based complementary currency are well documented. There are over 1,900 community-based currencies around the world. Examples include Ithaca Dollars (http://www.ithacahours.org), Time Banks (http://www.timebanks.org) and the lesser known but extremely successful WIR (http://en.wikipedia.org/wiki/WIR_Bank) based in Switzerland, and by Bernard Lietaer (http://lietaer.com).
All of these examples showed some sort of positive economic impact creating jobs and keeping businesses open and communities viable. However, there have been very few efforts at creating these sorts of currencies as a potential economic development tool.
A complementary currency based in a community creates the opportunity for the community to actually create their own means of exchange. This is very different from trying to bring money from the outside into the community.
This approach offers a novel development idea and utilizes a very ubiquitous technology to drive the implementation.
In South Africa we will work with the help of organizations like: Community Exchange Systems, Transition Towns South Africa - both of these are part of global networks of people that work with communities to help them in the process.
In addition we have been in conversation with many experts in the arena: Bernard Lietaer, Arthur Brock, Eric-Harris Braun, and many others.
The mobile application that is created will be open-source and open to use throughout the world. The final result being an increased ability for local communities to solve their own issues of liquidity and economic development without having to rely on donors or micro-finance options.
Complementary Currencies do not charge interest!!
Cc software - SMS
Hello,
I working for the NGO Stro www.strohalm.net and responsible for the open source community software www.cyclos.org.
The Cyclos project has been started in 2003 and the software used world wide by many organisations and communities. There are currently working nine developers full time on the software. We are developing a SMS controller/gateway that will be ready around July 2009. The software will allow SMS payments and other operations like notifications and account information retrieval. The operations can be Mobile-to-mobile and Web-to-mobile. The SMS controler software is standalone and can attend multiple instances (communities). It is possible to have local drivers (software connected to the local SIM/phone number) that can connect over webservices to the SMS controler in order to save SMS costs. All communication can be handled over secure web services what means that Cyclos - SMS controler and local drivers do not need to be necessary at the same location (but can be).
I would like to come in contact with an organisation that is interesting in contributing to the development and running a pilot with Cyclos and the SMS module.
Regards, Hugo van der Zee
ccsoftware@strohalm.nl
Now is the Time for Complementary Currencies
If ever there was a time for a complementary currency, NOW is the time. Complementary currencies were first experimented with during the Great Depression and achieved amazing results. Perhaps because of that, existing interests (banks) prevented them from being used on a greater scale.
In the last 10-15 years, many new experiments have demonstrated the viability and usefulness of complementary currencies. http://transaction.net/money/comp/ provides some good examples and further demonstration of their usefulness.
This project would make it much easier for other communities to start their own currencies. Durango, Colorado, USA is currently dveloping a Bartering network while another group of Independent businesses looking at ways that a local currency could unite both groups.
Tom
Complementary Currency
This is a project that has broader and significant possibilities Perhaps the time has come to explore expanding the concept of Complementary Currency to become a Global Development Complementary Currency, which could be used perhaps to overcome in some cases poor national monetary policies ( e.g. Zimbawe)?
Joe
This Application Can Help Build Healthy Real Communities
Complimentary demurrage-based currencies can help build healthy communities.
Complimentary currencies are proven to reduce unemployment, increase community income, and increase investment in public works - stable exchange media designed for community service
Applications developed for this project could be applicable globally (as local, regional, and sectoral currencies). A 'rusting' fee encourages currency holders to find beneficial ways to circulate the currency locally, multiplying community benefits.
This project is one promising approach to to addressing the challenge of how to implement beneficial complimentary currencies while limiting the potential for fraud.
For more info about why, see Margrit Kennedy's website, with essential articles including 'Why do we Need Monetary Innovation', and 'Financial Stability A Case for Complementary Currencies' , http://www.margritkennedy.de/index.php?modus=PRE&inc=UEB&lang=EN . Margrit clearly describes widespread monetary misconceptions and several proven solutions.
mobile currency
With the financial world in turmoil this is a very timely project to develop a complementary currency on mobile. Where ever the project focuses for its initial dev elopment it will be probably be able to be used anywhere the world.
No one knows where banks will collapse next and a mobile exchange within the control of a local community with the need to print secure paper could make a huge difference in a comunity.
Thanks Mike
Hey Mike,
Thanks for commenting. Yeah, the goal is for this project to be completely replicable and scalable. I see the application being used all over the world - and certainly creates opportunities for local communities to create their own viable currencies in times of economic dislocation.