The Money Transition - a typology of currencies
Marten Witkamp
Last modified: 2010-12-13
Abstract
The dominant type of currency now in use around the world covers only a small proportion of all possible kinds of currencies and purposes that the ‘toolbox of money’ could serve. More specifically, the dominant type of currency today promotes competition, income divergence, exponential growth, a short-term focus and is prone to bubbles and collapses. While this may be fine for some sectors of our socio-economic spectrum, it may not be fine for others, such as e.g. climate change or education. For complementary currencies (cc’s) to hit mainstream, however, the available case descriptions or practitioner’s handbooks are not enough. There needs to be a shared understanding about when different kinds of currency are appropriate and when they are worth the hassle of creating and using an added system of trade and account. Drawing on system transition theories, interviews with actors in the field and experience in cc advocacy, this paper portrays the Money Transition and a number of future scenarios for it. As a tool, it develops a typology of currencies with which to increase contextual awareness for cc initiatives and have a meaningful dialogue with established actors in and surrounding the financial world.