Stroud Pound: The History of a Community Demurrage Currency
In an effort to bolster local economies and encourage sustainable spending, the Stroud pound was introduced as a community-led financial experiment. Launched on 12 September 2009, the scheme was an initiative driven by the local Transition Towns group, aiming to keep wealth circulating within the Gloucestershire region.
The Foundation and the Chiemgauer Model
While other local currencies like the Totnes pound and the Lewes pound followed different structures, the Stroud pound was modeled after the Chiemgauer. The Chiemgauer is a community currency that has been circulating in the Chiemgau region of Bavaria, Germany, since 2003.
The defining feature of this model is demurrage—a system where the currency loses a small percentage of its value over time. For the Stroud pound, the demurrage rate was set at 3% every six months. This mechanism is designed to discourage hoarding and incentivize the rapid circulation of money within the local economy.
[ไม่มีภาพประกอบ]Early Adoption and Growth
The launch of the currency saw immediate interest. On the first day of issuance, local currency with a face value exceeding 1,000 Stroud pounds was sold to the public. By April 2010, the program had successfully enrolled 30 businesses across Gloucestershire, creating a network of vendors willing to accept the local notes.
| Feature | Detail |
|---|---|
| Launch Date | 12 September 2009 |
| Inspiration | Chiemgauer (Bavaria, Germany) |
| Demurrage Rate | 3% every six months |
| Initial Business Enrollment | 30 businesses (as of April 2010) |
Challenges and Decline
Despite the optimistic start, the currency faced significant hurdles. By 2011, issuance had slowed considerably, with only £4,000 worth of Stroud pounds being issued. Local business owners began to express frustration, citing the administrative hassle of managing the currency. Many noted that while customers remained supportive of local shops, they strongly preferred using sterling.
In 2015, organizers held discussions regarding a possible re-launch to revitalize the scheme. However, the fundamental issues of scale remained. Molly Scott Cato, one of the founders, stated in 2016 that the currency was "never viable" because there was insufficient currency in circulation, especially when compared to the success of the Bristol pound.
By November 2019, the project appeared largely dormant; the official website had not been updated since 2012, although the legal entity, Stroud Pound Co-op Ltd, continued to exist.
Key Facts
- Launched: 12 September 2009 by the Transition Towns group.
- Mechanism: Utilized a 3% demurrage rate every six months to encourage spending.
- Inspiration: Based on the German Chiemgauer currency.
- Peak Enrollment: 30 Gloucestershire businesses were enrolled by April 2010.
- Outcome: Deemed non-viable due to low circulation and a preference for sterling.
Frequently Asked Questions
What is the Stroud pound?
The Stroud pound was a local community currency launched in 2009 in Gloucestershire, designed to support local businesses and the regional economy.
What does "demurrage" mean in the context of the Stroud pound?
Demurrage is a fee or loss of value applied to the currency over time. In this case, the Stroud pound lost 3% of its value every six months to discourage saving and encourage spending.
Why did the Stroud pound struggle to succeed?
The currency faced challenges including the administrative burden on businesses, a strong consumer preference for sterling, and a lack of sufficient currency in circulation.
How did it differ from the Totnes or Lewes pounds?
Unlike those currencies, the Stroud pound was specifically based on the Chiemgauer model from Bavaria, Germany, which incorporates the demurrage system.
Is the Stroud pound still active?
While the Stroud Pound Co-op Ltd still exists as of November 2019, the project's website had not been updated since 2012, and founders have described the currency as having been non-viable.