Overview | How | Basis | Name | Backing | Implementation | Paper | Presentation | Benefits | Risks | Why

Common good banks will introduce and manage a local currency that is integrated with the official currency (for example the dollar), but nearly independent of the official currency. Insofar as we use local currency, the bank business can operate as we would like an ideal bank to operate in an ideal world.

Initially the local currency will take the form of credit only. Paper currency will come much later, if at all.

Our local currency system will require no self-sacrifice, no conscious decisions and no extra work for anyone. In fact, the system will be effectively invisible to participants, apart from saving them money. Overall, this system can save a community of 100,000 people over a million dollars a year, automatically, effortlessly, invisibly. Like magic.

1. How Can It Save Us Money. Using local currency for local commerce frees our dollars for other things.
2. Basis. Our currency will be based on the stable, inflation-free value of some basic local commodities, benchmarked regularly against the dollar.
3. Name. Call this currency "Common Goods" or just "Goods".
4. Backing. Issued and backed by participating depositors -- local government, businesses and organizations.
5. Implementation. Part of each credit transaction will be conducted in dollars and part in local currency, with the bank adjusting the proportion automatically, as needed. The bank will also automatically exchange dollars for local currency and local currency for dollars, as needed.
6. Paper currency. No paper (or coin) currency will be introduced until the local currency credit system is running well, and not for several years in any case.
7. Presentation. The bank will present all these unconventional features in a way that feels familiar and attractive to customers and acceptable to regulators.
8. Benefits. Prosperity, economic justice, protection from inflation and money shortages.
9. Risks. Since the currency will be backed by the members, not the bank, and since circulation can be managed comprehensively, the financial risks to the bank (or anyone else) are negligible.
10. Why Local Currency. Local currency supports the local economy, protects the environment, fosters community and advances economic justice. It will also save our communities quite a lot of money.