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- Alternative currencies are important for several reasons123:
- Diversification and decentralization: They provide an alternative to national currencies and reduce reliance on the global financial system.
- Social goals: Complementary currencies support local businesses and promote economic inclusion.
- Hedging against inflation: In times of rampant inflation, alternative currencies can hold value better.
- Policy response: Some countries adopt official currency substitution to address out-of-control inflation.
Learn more:âś•This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Alternative currencies are the future: why it matters for development
- Many of these currencies remain quite volatile in the short term. Their upward and downward swings reach over 10% of the value on a weekly basis. ...
theconversation.com/alternative-currencies-are-th…While national currencies are bound up in the inequities of the global financial system, complementary currencies have social goals, such as supporting local businesses or increasing economic inclusion for those without access to traditional capital.www.yesmagazine.org/economy/2021/07/09/local-…Reasons for currency substitution
- Rampant inflation causing the domestic currency to become worthless and people lose confidence. ...
- During capital flight, a foreign currency holds its value better. ...
www.economicshelp.org/blog/glossary/currency-su… - People also ask
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