We all know at least one cryptocurrency: Bitcoin. Maybe there are even a few more coming to your mind. But while many of us might view cryptocurrencies as a good or bad type of investment, there is also one type that mainly follows a social goal:
Local Cryptocurrencies
Local cryptocurrencies are different from e.g. Bitcoin as they are not globally available but only locally (. They mainly aim at reviving the economy of a small town, city or region. One of the most famous examples is the app Colu which is already in use in London, Liverpool, Tel Aviv and Haifa. Together with the municipalities, the company issues the local coins such as the Belfast coin (which will be released later this year) and TLV coin (Colu, 2019). 
In East London, the local crytocurrency “Local Pound, East London” by Colu is quite a success. Locals who are interested in boosting the local economy and supporting smaller business can exchange their British Pounds in a one-to-one Ratio for the local cryptocurrency (Businessadvice, 2017). Businessadvice (2017) claims that every pound spent at a local business is worth 4 times as much to the community as a pound spent at a bigger retailer. The local businesses give back to the community by providing jobs and paying taxes. Next to providing the citizens with a digital wallet and therefore making transactions easier for customers and businesses, Colu also helps local businesses thrive by promoting their stores on their app. With a map function, small and often unknown or hidden stores nearby can be found. Furthermore, the app offers discounts at businesses to citizens who enroll for volunteering activities via the app and therefore also increases the sense of belonging in the community.
While many local currencies might follow these social goals, many local currencies are also just created for fun. The ekrona is exists as a currency for true northmen. Other currencies such as the Scotcoin and CatalonianCoin are used as a political Statement and to show the wish for Independence (FXEmpire, 2019).
References & Futher Readings
Colu (2019) Retrieved from: https://www.colu.com/
FXEmpire (2019). Cryptocurrencies by the Region: Digital Money for Local Communities. Retrieved from: https://www.fxempire.com/education/article/cryptocurrencies-by-the-region-digital-money-for-local-communities-458625
Suberg, W. (2019). Belfast Launches Own Digital Currency to Boost Rockefeller Social Project Success. Retrieved from: (https://cointelegraph.com/news/belfast-launches-own-cryptocurrency-to-boost-rockefeller-social-project-success
East London Local Pound becomes latest currency taking the fight to corporate chains
Blockchain Comes to East London With Colu Local Currency Launch
