PARIS — Abeille, Florain, Pêche, Épi, Chouette, Galette… In certain parts of France, financial transactions sound almost poetic. Over the past two decades, the number of complementary local currencies in France has exploded, growing from zero to 82. The first, the Abeille, was created in the Lot-et-Garonne department in 2010. And the most recent, the Eco, was launched in three cities in the Seine-Saint-Denis department last summer.
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In the early 2000s, when Dante Edme-Sanjurjo discovered local currencies in Germany, they had yet to emerge in France. Captivated by their potential — citizen participation, ecological transition and the development of a circular, solidarity-based economy — he kept the idea in mind. In 2011, the journalist, specializing in social and solidarity-based economics, returned to his native Basque Country with the ambition of becoming involved locally.
“At the time, a group of environmentalists from the region had invited the founders of the Abeille, Lot-et-Garonne’s local currency, to give a conference. The project piqued their interest,” Edme-Sanjurjo says.
Gradually, Edme-Sanjurjo found himself among the founding volunteers of the Eusko, which launched in 2013. “We started from scratch,” he recalls. Today, the Eusko is the largest local currency in Europe, with 4,000 individual members, 1,400 professionals and 4 million euskos in circulation as of spring 2023. Edme-Sanjurjo has also become co-president of the Sol Movement, a monetary experimentation lab that unites local currency associations.
Many advantages
These unconventional currencies exist alongside official national currencies and are used within specific geographic areas, encouraging economic exchange.
As climate change calls for societal transformation, local currencies promote short supply chains and local economies — supporting small businesses and local farmers over large retailers and industrial agriculture.
A 2021 study by the Sol Movement on the social utility of local currencies revealed that 48% of respondents increased their consumption of local products since joining, 36% had increased their consumption of organic products, and 69% visited large supermarkets less frequently. Among professionals, 84% aimed to reduce their environmental impact and 64% focused more on the ecological practices of their business partners.
These currencies can bolster local economies and create jobs.
“Even though these projects are mostly driven by environmentalist movements, new currencies are emerging from broader initiatives, sometimes also carrying an emotional attachment to the territory,” Edme-Sanjurjo explains.
From both an economic and social perspective, these currencies can bolster local economies and create jobs. The Sol Movement study found 22% of professionals saw an increase in revenue, with payments generating 1.25 to 1.55 times more local income than a payment made in euros. This effect is particularly significant post-COVID.
“Since the currency remains within a specific territory, it strengthens local businesses and protects the jobs present there,” Edme-Sanjurjo says the co-founder of Eusko.
In 2022, researcher Oriane Lafuente-Sampietro found that SMEs participating in a local currency network saw a revenue increase of 8% to 16%. Advocates also highlight the strengthening of social bonds in regions that use local currencies.
“Local currencies have cross-cutting effects with social, economic and ecological impacts, addressing strong expectations in our society,” Edme-Sanjurjo says. “It is a tool that unites energy within a territory to serve a positive, common project, with an important dimension of solidarity.”
Promise for the future
Twenty years ago, local currencies were nonexistent in France, but today, the country leads Europe in their use. Nearly 40,000 individuals engage with 10,000 businesses or associations across 13,000 municipalities with €7.3 million in circulation in 2022.
Edme-Sanjurjo said the 2015 film Demain (Tomorrow) by French director and activist Cyril Dion made “a significant impact, raising awareness of the concept and mobilizing activist circles. France, being a very dynamic country in terms of associations, then experienced a boom in the creation of local currencies.” The next challenge is to expand their reach beyond activist circles.
Moneko, the local currency of Loire-Atlantique, was born in 2020 from the merger of SoNantes and Retz’l. The first local currency, entirely digital, had been launched by the city of Nantes, while the second was created by volunteer activists from the nearby Pays de Retz with a strong alter-globalization commitment.
The main obstacle remains the lack of resources.
“These two projects had their moment but eventually ran out of steam,” says Sébastien Comyn, sustainable food project manager at Moneko. “On one hand, the scale wasn’t gaining traction. On the other, the volunteer network was wearing out.”
By 2023, Moneko was France’s second-largest local currency, with 1 million monekos exchanged over 12 months. For Comyn, this success is partly due to public policy support.
“Around 50% of our revenue comes from public funding,” he explains. Moneko also inherited the activist network of Retz’l and the digital payment system of SoNantes. “This isn’t very common in France, but it provides a significant technical advantage,” he notes.
Lack of resources
In July 2014, France’s law on the Social and Solidarity Economy (SSE), known as the Hamon Law, provided a legal framework for local complementary currencies. Article 16 of the law recognizes local currencies as payment instruments, provided they are issued by SSE enterprises.
“The main obstacle remains the lack of resources,” says Edme-Sanjurjo. “In territories without municipal support, some local currency associations operate with volunteers and a budget of just €1,000 per year.” The economic model underpinning these alternative currencies can sometimes be fragile.
Currently, Moneko’s revenue comes from 20% professional and individual memberships, 30% municipal memberships, and 50% from grants and project funding.
It would be best if local authorities and businesses partially paid their employees in local currency.
“This situation could be a vulnerability, especially since we now have salaried employees,” says Comyn. “We don’t want the pursuit of funding to overshadow the activist spirit we hold dear.”
The Sol Movement is pushing for a state-supported fund for local currencies to ensure their continued growth. “We need more support, better communication, and facilitation of local currency use by municipalities,” Edme-Sanjurjo says.
Legally, local authorities can offer creditors the option of being paid in local currency, but simplifying these procedures would improve circulation. “For a currency to circulate, it would be best if local authorities and businesses partially paid their employees in local currency,” Comyn says.
Local currency advocates are also calling for a digital transition. Currently, only a third of local currencies have gone digital. “At first, all local currencies started with paper notes, but these quickly showed their limits. It’s an accessibility issue,” Edme-Sanjurjo explains.
“Today, notes represent only 3% of the currency exchanged,” Comyn says.
A real tool for impact
The Sol Movement views local currencies as a way for citizens to engage with issues that are sometimes considered too technical for non-experts. A 2021 study by the organization found that 69% of its members reported a better understanding of the connections between the economy and societal issues since using local currencies.
Often born from engaged citizen collectives, local currencies also enable small-scale democratic participation.
“The popular education aspect is a big issue for us. We make sure to mutually build our skills,” Comyn says, highlighting the need to demystify these issues.
Moneko regularly organizes training sessions on currency-related challenges and hopes to offer “currency murals,” a tool recently developed by Sol Movement. “Once you understand the value of local currencies, using them becomes almost irreversible,” says a Moneko representative.
It’s often seen as a game for the eco-hipster bubble.
Edme-Sanjurjo agrees that emphasizing education is key. Eusko has even launched the Institute of Local Currencies to train individuals and associations. “Local currency isn’t just for a militant and ecological part of society; it also involves SMEs, trade associations, farmer networks, liberal professions, accountants, and local authorities… Mobilizing them is a real skill.”
Comyn regrets that this tool is still underestimated. “It’s often seen as a game for the eco-hipster bubble,” he says. “But we don’t want to play anymore. Local currency is a real tool for impact.”
Empowerment is a key focus for Moneko. For instance, they are involved in the “Social Security for Food” project in Nantes. In 2022, the Lyon-based local currency, the Gonette, joined a research project to support students pursuing healthy, sustainable food.
“We want to allow everyone to become an active participant in the food transition, even if they don’t have all the keys,” Comyn says. Local currencies, born from the desire to reclaim money, could be a vital tool in revitalizing local communities.
