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2008-10-07

Organic money


Here's a great example of what we could easily call a "local currency" - that doesn't involve any bloody, anti-corporate revolution.

With currency unavailable from traditional, centralized money-lending banks, a tiny organic cafe called Comfort has been unable to raise the cash required to finish renovations and finally open.

As a way to get the necessary funds, the owner has decided to sell VIP cards. For every dollar a customer buys on a VIP card, they receive the equivalent of $1.20 worth of credit.

The owner gets the cash infusion he needs to build the new restaurant - and since he's paying for it in 20% tab adjustments, it just comes out of profits. He gets the money a lot cheaper than if he were borrowing it from the bank, paying back in cash over time. Meanwhile, customers get more food for less money.

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