German complementary currencies lead the way...

I recently attended gatherings of the two major complementary currency movements in Germany: Tauschring http://www.tauschring.de/home.htm and
Regiogeld http://www.regiogeld.de/ .

Tauschring emerged in Germany in the mid-1990s for the same reasons they emerged elsewhere: economic recession, high unemployment and lack of money or spending power. The situation was exacerbated by reunification of east and west Germany. Unemployment levels are still 20 or 30% in some parts of East Germany today. Tauschring means 'exchange ring' and they have mostly adopted a similar 'mutual credit' model to LETS and Time Banks.

Regiogeld emerged in 2003, when the successful Chiemgauer currency was established in Bavaria: http://www.chiemgauer.info/
There are currently 28 active systems and another 32 in development all across Germany, Switzerland and Austria: http://www.regiogeld.de/initiativen.html?&no_cache=1
There are 3 models of Regiogeld:
1. Backed by Euros - people buy Regiogeld with Euros and spend it into circulation. They can exchange Regiogeld for Euros again whenever they wish.
2. Backed by services - in effect, the same model as the Tauschring, in that what backs the currency is the promise of others to give service in return.
3. Hybrid - people can buy currency with Euros or earn it with services.
Regiogeld has been particularly successful at attracting large numbers of businesses to participate, including a local organic supermarket (Chiemgauer).

Just as LETS and Time Banks have emerged as distinctive 'brands' for CCs in the English speaking countries, so Tauschring and Regiogeld have become 'brands' in the German speaking countries. Behind all these public brands there is much cross-fertilisation of models and ideas. Unfortunately people misunderstand each others' motivations and ideology creeps in to fill the vacuum of clear methodology. So Tauschring people can be suspicious of the more 'professional' looking and snappily branded Regiogeld and Regiogeld people can be impatient with the seemingly endless debates at the Tauschring gatherings and the fiercely guarded creativity and sometimes chaotic independence of people running local systems.

In both movements there is conflict between different approaches and emphases. Here is a summary of the key issues I observed people grappling with:
1. Encouragement of free competition between neighbouring systems to attract participants versus clearly agreed criteria for cooperation and sharing of information.
2. Backing of currency: Euro, services or mixture - see above.
3. Professionalisation: image, PR, lobbying, quality criteria etc.
4. Software development: use of Cyclos or other software.
5. Attracting investment in regional currency development.
6. Attracting political support through lobbying without becoming hostage to party political interests.
7. Preparing for crises: are local currencies a protection against inflation, deflation or a crash of the mainstream money system?

I am deeply impressed by the energy and commitment of people here to make these systems work and help them to improve. There is clear leadership from key individuals combined with a deep understanding of 'process' and the way to allow conflict to be a renewing and energising resource rather than a destructive one. They face problems and work them through.

The rest of the world can learn a lot from the German speaking movement.