Local Currencies: A Tool for Territorial Impact Dedicated to Societal Transitions.

The Case of Eusko in the Northern Basque Country

Abstract

Many cities and regions have implemented a complementary local currency (CLC), and new initiatives keep emerging despite the low economic impact reported in academic literature. This paradox raises questions about the territorial effects of CLCs. Our study presents the results of a research-action project supporting Euskal Moneta in its Social Impact Measurement process. This non-profit organization manages the Eusko, the CLC used in the Northern Basque Country since 2013. The research highlights the interest of adopting a social impact measurement methodology involving stakeholders. While confirming the limited short-term economic impact of a CLC, our findings emphasize its ability to foster social ties and encourage behavior change among users. Thus, these results contribute to the development of knowledge that can be used for the management of other CLCs and, more broadly, for supporting any social innovation approach that aspires to social transformation or transition. Our conclusions open up prospects for future research on the ability of specific financial tools to modify the consumption behavior of their users. In a context of ecological emergency and necessary transition, this field of opportunities deserves to be explored by a long-term study with EM, additional studies with other CLCs or relating to other financial tools.