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What Is a Local Currency?

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A 20,000 kekfrank note which is worth 20,000 Hungarian forints.
You have heard of the euro, the dollar and the yen, but have you heard of the kekfrank, the Lewes pound and Berkshares?

All three are local currencies. All three are legal, but they can only be used in a particular region, and only in shops that accept them.

The reason communities decide to create a local currency is to support local businesses.

In order to use the currency, people must shop at nearby stores. Therefore, the money stays in the community and helps the local economy.

These currencies are usually worth the same amount as the national currency. For example, a kekfrank is worth the same amount as a Hungarian forint, the Lewes pound is equal to a British pound and a Berkshare is traded at one US dollar.