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It’s the motivation, stupid! The influence of motivation of secondary currency initiators on the currencies’ success

This paper attempts to explain the success of secondary currencies. Success is defined as the degree to which the initiators of these currencies manage to reach their original goals. In order to do so, we draw on two explanatory factors:  the motivation of a currency’s founder and the degree of organization. We employed a combination of qualitative interviews, secondary literature review and standardized questionnaires with seven secondary currency projects in Croatia (CROM), Germany (KannWas, Engelgeld), Greece (Ovolos, TEM) and the United Kingdom (Bristol Pound, Brixton Pound). The main findings are that projects which pursue several different motivations are more successful than those with fewer goals. As for the degree of organization, projects which score high on all dimensions of organization are correlated with higher project success. Building on this we propose a typology of two groups: Type 1 cases have low diversity of motivation and organization (CROM and Engelgeld) and Type 2 cases have high diversity of motivation and organization (Bristol Pound, Brixton Pound, and TEM). The two remaining cases, the Ovolos and the KannWas cannot be clearly assigned to any of the types. The motivation-organization typology can guide future research on the motivation of founding and using secondary currencies.

Lukas Fesenfeld, Jan Stuckatz, Iona Summerson, Thomas Kiesgen, Daniela Ruß, Maja Klimaschewski

IJCCR 2015 fesenfeld

To cite this article: Fesenfeld, L., Stuckatz, J., Summerson, I., Kiesgen, T., Ruß, D. and Klimaschewski, M. (2015) ‘It’s the motivation, stupid! The influence of motivation of secondary currency initiators on the currencies’ success’ International Journal of Community Currency Research 19 (Summer) 165-172  <www.ijccr.net>  ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2015.016

Western Massachusetts Launches Its Own Currency

Are Alternative Currencies A Substitute Or A Complement To Fiat Money? Evidence From Cross-Country Data

This paper studies the determinants of the usage of alternative currencies (currencies which exists parallel to the national currency of a country) across countries. We find that monetary stability, financial sector development and a country’s general level of economic development are all positively related to both the likelihood of a country hosting an alternative currency as well to the number of alternative currencies a country is hosting. This suggests that these currencies, in contrast to their historical function, mainly act as a complement to fiat money. We discuss the implications for the role of fiat money in the economy as well as for the welfare effects of alternative currencies.

Damjan Pfajfar, Giovanni Sgro, and Wolf Wagner

To cite this article: Pfajfar, D., Sgro, G. and Wagner, W. (2012) ‘Are Alternative Currencies or a Complement to Fiat Money? Evidence from Cross-Country Data’ International Journal of Community Currency Research 16 (D) 45 – 56  <www.ijccr.netISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2012.004

IJCCR 2012 Pfajfar et al