Of course, local currencies are great for people, but are also a disaster for governments, which is why they are practically illegal in Australia.

The only reason local currencies are ever needed is to compensate for the mismanagement of the national currency.

Yes Aidan, if the managers of the national currency were benevolent, omniscient, omnipresent and omnipotent, then there would be no need for any other currency, but they are neither of the above.

No Yuyutsu, they wouldn't need to be omniscient, omnipresent and omnipotent, just benevolent and competent. Which at the moment they don't seem to be, but getting them to be would probably be easier than introducing local currencies.

Dear Aidan,

Have you ever seen anyone falling down the chimney, yet remaining clean and tidy?

Have you ever seen anyone holding a position of power over others, yet remaining benevolent?

Local currencies can keep the bastards more accountable: if indeed they are benevolent and competent, then the people would use those local currencies only a little, preferring the national ones, but the regime will need to watch its steps knowing that otherwise the local currencies will take over.

One who is benevolent and competent would not make it illegal for others to have their own competing currencies - they just trust that theirs is better.

Good to see an intelligent article making the economic case for local currencies instead of the usual, shallow coverage portraying them as 'quirky' middle-class playthings.

Check out the 2012 book "People Money - the Promise of Regional Currencies" I co-authored with Margrit Kennedy and Bernard Lietaer for a global overview of local currencies. It includes sixteen profiles of local systems from around the world and shows some of the untapped potential you talk about: http://www.triarchypress.net/people-money.html

I have also published two pamphlets about local currencies "Local Currency - What Difference Does It Make?" and "The Map - How To Out Your Local Economy": http://valueforpeople.co.uk/#book