Bristol is a port city in Great Britain, which has introduced its own new currency - the Bristol pound since September 2012. Thus, the city authorities intend to reduce the consequences of the European economic crisis and support local businesses.
The new currency will mainly be used by representatives of local small businesses who have put their signature on the relevant agreement. They will be able to use the currency to pay taxes. Also, the administration of the city council plans to pay salaries of 17 thousand employees in local money.
According to the authors of the project, the use of local currency will help local businessmen compete with international corporations. “About 80% of all money goes from the local budget to payments to multinational corporations. But the money will stay if it is spent in local stores,”said Kieran Mundy, co-founder of the Bristol pound.
It will not be difficult for the residents of Bristol to exchange their regular British pounds for the new currency at local banks. In this case, the exchange rate will be the same. The new banknotes will be decorated with images of local attractions and famous residents of Bristol. Also, the banknotes will be equipped with special protection against counterfeiting.
According to Kiran Mundy, the emergence of the local settlement currency is a kind of reaction to the ruthless actions of bankers and, in addition, the desire to receive the money earned without intermediaries. The media quoted one of the local residents, Richard Ryde, who said that the introduction of the Bristol pound into circulation "will make it possible to do this most effectively." He heads a security company and has already taken part in this experiment.
Attempts to introduce a local currency have been made more than once in different countries, the UK is no exception. But now, for the first time, such a measure may acquire the greatest scope. According to Mundy's estimates, about 3 years after the introduction of the new currency, the turnover of Bristol pounds is likely to reach several tens of millions.
