Stories of Local Currencies

Since 2008, the humble town of Lewes (England) that hosts about 20,000 inhabitants has been using the Lewes Pound. Managed by just four people, 15,000 Lewes Pounds are in circulation today, with over 100 businesses involved. To achieve such a result with so few human resources, the Lewes Pound initiative developed an interesting strategy.

They manage to keep users’ interest up after thirteen years by issuing new note designs every five years, sometimes publishing collector's packs signed by the mayor. Susan Murray, one of the directors at Lewes Pound CIC, explained to us that many people enjoy collecting the currency or even giving it as a gift. As the notes lose their value after five years, this issuance strategy helps to assess how much money has been used or how much has “leaked” out of the economy, not being used. People are always curious about the new design of the currency, which makes it more fun to use.

Beyond just keeping existing users’ interest up, the Lewes Pound initiative has also been successful in engaging new consumers. They have implemented a social welfare strategy via the "Donate a Drink" project, which allows people who cannot afford quality food to receive Lewes Pounds based on donations. The idea is centered on "The Depot," a cultural center in the city where consumers can optionally leave a tip of three Lewes Pounds with the purchase of a coffee. The tips are then donated to low- or no-income individuals.

According to the Lewes Pound initiative, this strategy is quite successful. It restores a sense of community as well as self-esteem and hope to those most in need. Local and organic stores are seeing new customers coming through their doors to buy their products. It gives the currency an ethical dimension that does not exist with the use of the pound sterling. Also, for every Lewes Pound issued, five pence Lewes are pledged to support Lewes by funding local projects (not to fund the Lewes Pound initiative).

Overall, the Lewes Pound CIC is quite satisfied with what the Lewes Pound brings to the city and its citizens. At present the local currency is only available in cash form. The Lewes Pounds CIC would love to see their currency introduced into online banking, however there is not enough money for such a project yet. The Lewes Pounds initiative is mainly funded by support from local businesses and grants (from which 4000 pounds sterling goes on printing the current issue). They hope to be able to find more grants soon to make the Lewes Pound even more successful.