Chapter The politics of alternative currencies

Abstract

A wide variety of new forms of money have been developed in recent decades as a challenge or complement to the official, dominant currencies. LETS, local currencies, carbon currencies, and Bitcoins are all examples of this new trend. These currencies are at the heart of a larger movement that questions the present state of money and argues that new currencies might help to build resilient economies and “warmer” social relations. This book focuses on radical alternative proposals as well as on small-scale experiments, and makes use of the analytical tools of philosophy and of economics, with one main question in mind: can alternative currencies constitute desirable alternatives to the present monetary system? Overall, the book will raise serious doubts regarding the capacity of such currencies to deliver on their promises. In part, it will show that several arguments in favour of alternative currencies are lacking in consistency and clarity, and are thus in need of thorough revision. More fundamentally, it will argue that these currencies rarely succeed in fulfilling their objectives and that their fulfilment would entail significant conflicts with justice and economic efficiency. This book is addressed to researchers in economics, politics, and philosophy of money, especially those working on alternative monetary systems.