Chiemgauer

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Chiemgauer is the name of a REGIO community currency started on 2003 in Prien am Chiemsee, Bavaria, Germany.

Christian Gelleri, a high school teacher, started this project with his students who are in charge of designing and printing vouchers, administration, accounting, advertising and other services. Now it is supported by a German regional currencies' network called RegioNetzwerk.

1 Why
2 How it works
3 Statistics(in 2005)
4 References

[edit] Why

Employment creation: students are hired to work, earning some allowances.
Promotion of cultural, educational and environmental activities: the Chiemgauer system supports non-profits who work for such purposes
Promotion of sustainability: organic food and renewable energy among others
Strengthening the solidarity: enhancing the human relationship between local shoppers and businesses
Stimulation of local economy: Chiemgauer retains purchasing power within the region better than the Euro and favors local small businesses, stimulating transactions by the demurrage.

[edit] How it works

Bills of 1, 2, 5, 10 and 20 Chiemgauer were issued. Each one is equivalent to respectively to 1, 2, 5, 10 and 20 Euro.

To maintain them in circulation, every three months, you have to put on the banknotes a "scrip", corresponding to the 2% of the banknote value. This system, called demurrage, is a sort of currency circulation tax and was invented by Silvio Gesell.

Chiemgauer, considered to be equivalent to the Euro, circulates as follows within Prien and neighboring towns:

Non-profits: purchase 100 Chiemgauer at 97 Euro and resell them at 100 Euro, therefore earning 3 Euro to be spent for their own activities.

Shoppers: exchange 100 Euro into 100 Chiemgauer at a non-profit they support, allowing it to have extra cash income without donating. Also, spend Chiemgauer at local businesses at face value, therefore helping both local non-profits and businesses without any further cost.

Businesses: accept 100 Chiemgauer at face value and spend them for their own purchases or exchange 103 Chiemgauer into 95 Euro, losing 5% for commission but earning more by attracting Chiemgauer members to their products and/or services.

Chiemgauer Office: sell 100 Chiemgauer at 100 Euro, and the office repays 97.85 Euro for re-exchange, thereby retaining 2 Euro to cover its administration cost.