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It is generally accepted that massive tourism and a vibrant indigenous culture are mutually exclusive. Bali has so far proven to be an exception to this rule. This article explores a hitherto overlooked socio‐economic mechanism behind that exception. It is a dual complementary currency system used for centuries by highly decentralized and democratic decision‐making organizations. The reasons why such a dual currency system is so effective in mobilizing popular cultural creativity is investigated, and a systems framework is proposed to determine the conditions under which this model could be applicable outside of Bali. This framework is then tested with a second case study: traditional shell currencies in Papua New Guinea. Finally, some potential applications in areas in the world other than traditional cultures are portrayed.

The purpose of this study hopes to encourage further research into the topic of local currencies, as well as specific research into increasing the efficiency of these systems through the use of blockchain technology. There is currently a lack of available research into the topic, which poses barriers for those who wish to study it, so the paper provides a general overview to be used as a starting point for those wishing to broaden their knowledge of local currency systems while also introducing a working implementation of a proof-of-concept for the proposed system.

A literature review of available studies on local currencies is conducted to provide an overview of the current systems and their shortcomings. Subsequently, blockchain technology is briefly introduced and an Ethereum-based model is proposed, which helps overcome the problems identified. The section exploring the Ethereum-based model draws code written by the author to simulate the features.

The paper concludes that blockchain technology can significantly help improve efficiency, transparency and security of local currency systems, while also helping cut costs associated with the implementation of a complementary monetary system. In the medium-term, local currency systems will most likely use a blockchain protocol as the underlying technology for the network.

Local currencies are an understudied topic by itself and the intersection between them and blockchain is a nearly non-existent research space. Thus, the paper takes a multidisciplinary approach, aiming to bridge the fields of computer science and economics to provide a foundation for further research.

Cryptocurrencies are notoriously difficult to value from a fundamental perspective. This valuation challenge is rooted in various debated issues in academia and the investments industry. For example, do cryptocurrencies and other cryptoassets have intrinsic value in the conventional sense? Can one appropriately regard cryptocurrencies as digital fiat currencies? What distinguishes cryptocurrencies such as bitcoin and ether from precious metals like gold from a financial perspective? How do cryptocurrencies compare to other cryptoassets in terms of pricing and valuation? This chapter aims to provide responses to these questions, discuss approaches to cryptoasset valuation, and identify areas for future research.

Contrary to what its title might suggest, this chapter does not develop an alternative vision of finance. On the basis of the financial world as it currently operates, we propose to identify the paradoxes and the likely evolution of a banking and financial system evolving. Based on the facts, this chapter seeks to extend the discussions initiated in the last chapter, entitled “Socially responsible banks?” of our book “The management of the bank,” published by Vuibert editions. The frantic pace of innovation and the requirements of regulators encourage banks to review their organization and their governance. This chapter attempts to position the bank between two paradoxes: on one side, the crises have not made more responsible banks. The facts remain: rates and currency manipulation, embezzlement rules on bonuses, even if some are still under financial assistance of the United States. On the other hand, the “finance otherwise” innovates, disturbs, and upsets. Creative players such as collaborative funding or virtual currencies are not really threatening to the big banks. But in the past, marked by their personnel costs and infrastructure cannot meet the agility of these new entrants “crowdfunding,” and other online payment methods have backed the Web. These innovations really threaten banks that do not lack the resources to adapt. And if tomorrow, the banks no longer existed? Behavior changes and already a growing number of clients save, borrow, and lend the use of means of payment to settle their online purchases without using the services of traditional financial institutions! A certainty, “finance otherwise,” will play a stimulatory role. The speed and magnitude of change is such that it becomes necessary for banks and financial institutions to adapt to these new technologies to increase or simply maintain their business. Based on the facts, the chapter explores and analyzes the developments that may become sustainable for a banking system reluctant to lose the monopoly of the distribution of credit and means of payment. The “end of the banks,” is a “provocative” subject but insufficiently addressed in the economic literature.

The purpose of the paper is to determine the future role of virtual currencies. This paper indicates their pros and cons as alternatives to “real” money and explains their appearance as the reflection of the present trends. It also presents the possible scenarios of their development.

The paper is based on the former foresight research results and literature review. It highlights the main trends in contemporary economy and their impact on financial services. The Bitcoin case is the starting point for the virtual currencies’ market analysis and construction of possible market changes scenarios.

Virtual currency schemes are the reflection of present trends. They are just ahead of our times but may become a common means of payment, changing the way of providing financial services, eliminating intermediaries and marginalizing the role of financial institutions.

The multiplicity of virtual currencies and ceaseless introduction of innovations impede the presentation of the complete market picture. The lack of reliable statistical data makes the estimation of the market growth difficult.

This paper indicates influence of technology development, virtualization and networking on payment systems’ functioning.

This paper shows the impact of environmental changes on consumers’ acceptance of virtual currencies.

The virtual currency as a payment system is quite new and still a marginalized phenomenon. Nevertheless, the pace of virtual currency market growth after its recent introduction and appearance of Bitcoin successors seems to be the signs of future changes in financial service sector.

The chapter looks for the conditions of a contribution of microcredit to poverty alleviation.

It uses socioeconomical hypotheses for defining a direct and fast positive effect of microcredit on the income of the poorest. The contribution raises ten issues or conditions at a micro, meso and macro level.

It is not often that these ten conditions are all completely met. So, the impact of microcredit is generally low as regards the alleviation of poverty. The problems to achieve them are linked to the specificities of the clients and of the prevailing institutions in various sub-Saharan Africa countries.

The chapter clearly identifies the limits of microcredit and their reasons.

Over the last 30 years, a range of different complementary currency models have been developed and diffused across the world. Such currency systems have been researched from a variety of different perspectives, such as policy tools (Williams et al., 2001) and social movements (North, 2006). Many of these have explicit links to sustainability objectives and the green movement (Helleiner, 2000; Longhurst & Seyfang, 2011; North, 2010a; Seyfang, 2009), and some environmental writers argue that monetary reform and the development of multiple currency systems are critical factors in achieving environmental sustainability (Douthwaite, 1999). This chapter explains how such a ‘green’ currency emerged from within the environmentally focused Transition Town social movement. This movement has given rise to a range of locally based grassroots enterprises that deliver local services and goods. However, it is argued here that such enterprises can also act as instigators of radical innovations, such as complementary currencies. As such it conceptualises currencies as a form of technology and uses the empirical case of the Totnes Pound currency as an example of a technology that has emerged from civil society. Adopting this framing, the chapter draws on theory relating to the formation of innovative technological ‘niches’ to provide insights into the challenges that they have to overcome in order to survive and flourish. The chapter therefore argues that exploring complementary currencies through the lens of innovation theory can provide valuable insights into their development, and that such an approach may prove useful where grassroots enterprises are engaged in other forms of innovative activity.

Growing inequality and socioeconomic and environmental degradation concerns forces us to think about how innovative technologies can contribute to reduce this problem. This study aims to analyze the potential of social cryptocurrencies to enhance the community development and cooperation between small businesses of the near environment. The evolution of these technology-based schemes could be key factors for generating innovative social enterprises, improving the quality of life in the community; in this way generate a conceptual model to sustainable development, while being more transparent, efficient and scalable as they are supported by technological applications.

Based on an in-depth study of the relevant literature, a conceptual model was designed. The concept of social cryptocurrency is proposed as a new approach to virtual currencies for social purposes and sustainable development.

The key findings point out that actors such as innovation and social entrepreneurship will come together in a new generation of social currencies, extending cryptocurrency technology to social business domains.

The impact of this will result in a better quality of life for society and the achievement of several sustainable development goals. However, a limitation would be that its scope depends on certain characteristics of the local environment. Furthermore, the proposed model will require validation in later phases through social experiments.

The main contribution of this paper is in structuring a formal model that, based on empirical experiences and the use of the technology that underlies cryptocurrencies, proposes a set of constituent elements and characterizes them to contribute to achievement of sustainable development.

The purpose of this paper is to explore an alternative Islamic monetary system in which money is created from supply chain grassroots based on work effort and is accessible to people as long as they offer goods and services demanded by others.

This study adopts the critical realism approach and highlights the challenges with the present monetary system. It also proposes to address these challenges through an alternative monetary system in which money creation starts from the grassroots of the supply chain. The proposed system extends the real-world complementary currency concept of barter to a holistic electronic trading platform, which includes chain barter alternatives, licensed warehouses and electronic warehouse receipts within the Islamic microfinance practice, thereby facilitating cross-border trade and international trade payments. An electronic currency, valued at the worth of goods produced in the supply chain, is introduced as the medium of exchange.

The problem with past monetary systems can be addressed through current information technology and supply chain management to enable a monetary system and money creation based on real economic transactions.

This study proposes an alternative monetary system, which is only possible by harnessing supply chain management with money creation. The proposed monetary system may be considered, should the present system fail or need to be improved.