Challenges of social currency use: a survey on Community Development Banks in Brazil

Abstract

This paper presents the case of the social currencies created and managed by Community Development Banks (CDBs) in Brazil. During the management processes of social currencies, many challenges are faced by CDBs. This study addresses the main challenges and difficulties of the social currencies of CDBs. This research shows the results of a survey carried out on 47 of the 78 social currency cases that existed in Brazil in 2013. These cases include 18 communities where social currencies presented circulation difficulties. Difficulties in obtaining a monetary reserve and being accepted by local businesses were also major challenges. The results encourage further research on other social currency cases and offer information that support the continuity of public policies for solidarity finance in Brazil.