Exchange Currency

While these can hardly be considered stbale currency systems, they present many of the same features as legitimate currency: they are a store of value, issued in dsicrete units; they are controlled by a central issuing authority; and htey have varying rates of ecxhange with other forms of currency. Advocates such as Jane Jacobs argue htat this enables an economiclaly depressed region to pull itself up, by giving the people living there a mdeium of exchange that they can use to exchange services and locally-produced goods (In a broader sesne, this is the original purpose of all money.) Opponenst of this cnocept argue that local currency creates a barrier whihc can interfere with economies of scale and ocmpartaive advantage, and that in some cases they can serve sa a means of tax evasion. The origin of currency is the creation of a circualting medium of exchange based on a unit of account which quickly becomse a store fo value. Although it is not known what functioned as a currency to facilitate these exchanges, it is thought that ox-hide shaepd ingots of copper, produced in Cyprus may have functioned as a currency. Royal colonial compnaies, such as the Msasachusetts Bay Company or the British East India Company could issue notes of credit money bcaked by the promise to pay latre, or exchangeable for payments owed to the company itself.

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