Laurence Raineau, Sociologist at the University of Paris Sorbonne, analyses moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More and its influence on societal transformations in her study “L’argent, miroir de la société”, (Communications 2/2012 (n° 91), p. 243-259).
Ever since the Gold StandardA monetary system in which the monetary unit of a country is based on a fixed amount of gold. More was dropped in 1971, money has gained independence from the precious metal and has evolved into a renewed paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More tool, free of the finite relationship it had with nature (gold).
From scriptural money, to immaterial payments to cashMoney in physical form such as banknotes and coins. More de-benchmarking, money as we know it today has become something completely different from what it was in 1971. Today trust in cash is no longer linked to something material; it is solely based in one’s community, its values and in the future.
Because of money’s “dematerialization”, it can theoretically be reproduced to infinity. In reality, the deterrent to such practices are social constraints and, consequently, the responsibility of a government vis-à-vis to its citizens.
But despite its “immateriality”, cash is a modern representation of humans’ relationship to today’s society: it’s a central tool for social exchanges (physical, psychological and social) between members of a community.
The multiplication of financial crises has pushed some to question the limits of today’s monetary system, cash being often criticized as archaic or obsolete. On the contrary, cash’s evolution into a tool that refers to only itself and nothing else, proves that it has been capable of evolving with the times to respond to societal needs.
It might not be necessary to look very far for a viable solution to today’s economic challenges. In fact, the solution might be in cash itself, just in another role: a complimentary tool to an already established currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More.
Community (or local) currencies are already gaining ground in many societies and have shown that they are capable of boosting local economies while creating new ties between members of a given community. There is a parallel between the growth of community currencies and that of local energy production; both offer an alternative to a centralized system and both aim at developing local communities. These alternative monies empower citizens and respond to needs that can’t or haven’t been met by traditional currencies – and they are all limited to a locally defined perimeter. Alternative currencies also create new financial circuits within the local economy while instilling new social and economic trends. In the end, thinking small could quite possibly turn out to be the solution to be big again: a gradual evolutionary path to strengthen a stagnant system.
To read the full research paperSee Banknote paper. More [in French only], please click here.