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Generic and Universal Local Cryptocurrency: LCoin

Author

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  • Frédéric A Hayek

    (UCA - Université Clermont Auvergne, LIMOS - Laboratoire d'Informatique, de Modélisation et d'Optimisation des Systèmes - ENSM ST-ETIENNE - Ecole Nationale Supérieure des Mines de St Etienne - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne - INP Clermont Auvergne - Institut national polytechnique Clermont Auvergne - UCA - Université Clermont Auvergne)

  • Pascal Lafourcade

    (UCA - Université Clermont Auvergne, LIMOS - Laboratoire d'Informatique, de Modélisation et d'Optimisation des Systèmes - ENSM ST-ETIENNE - Ecole Nationale Supérieure des Mines de St Etienne - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne - INP Clermont Auvergne - Institut national polytechnique Clermont Auvergne - UCA - Université Clermont Auvergne)

  • Ariane Tichit

    (UCA - Université Clermont Auvergne, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

Blockchains are finding evermore applications. One underused application of blockchains is local currencies. Local currencies are currencies that float in a restricted area in purpose of growing the local economy by forcing local spending. We introduce the concept of geographical demurrage: money loses of its value the farther away it is spent. We construct four generic local cryptocurrencies: a regular one mimicking local paper money; a second that restricts spending to the dedicated geographical area; a third that utilizes geographical demurrage for maintaining the system, and a fourth that lifts the geographical restrictions and maintains geographical demurrage, thus creating a universal local cryptocurrency: a currency that loses value correspondingly to the distance between its point of reception and point of spending. So without the need to restrict spending to a given geographical sphere, the currency will always encourage local spending, no matter where it is spent; yielding a universal local cryptocurrency we name LCoin.

Suggested Citation

  • Frédéric A Hayek & Pascal Lafourcade & Ariane Tichit, 2023. "Generic and Universal Local Cryptocurrency: LCoin," Post-Print hal-04176704, HAL.
    • Handle: RePEc:hal:journl:hal-04176704
    Note: View the original document on HAL open archive server: https://hal.science/hal-04176704v3
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    References listed on IDEAS

    as
    1. Ariane Tichit & Corentin Elissée & Frédéric Hayek & Pascal Lafourcade, 2022. "La Blockchain, avenir des monnaies locales ?," Working Papers hal-03659241, HAL.
    2. Fabienne Pinos, 2020. "How could blockchain be a key resource in the value creation process of a local currency? A case study centered on Eusko," Post-Print hal-03121151, HAL.
    3. Jinan Liu & Apostolos Serletis, 2019. "Volatility in the Cryptocurrency Market," Open Economies Review, Springer, vol. 30(4), pages 779-811, September.
    4. Jérôme Blanc, 1998. "Free Money for Social Progress: Theory and Practice of Gesell's Accelerated Money," Post-Print halshs-02380131, HAL.
    5. Marshall, Adam P. & O'Neill, Daniel W., 2018. "The Bristol Pound: A Tool for Localisation?," Ecological Economics, Elsevier, vol. 146(C), pages 273-281.
    6. Ye Guo & Chen Liang, 2016. "Blockchain application and outlook in the banking industry," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-12, December.
    7. Jérôme Blanc, 2011. "Classifying "CCs": Community, complementary and local currencies' types and generations," Post-Print halshs-00583587, HAL.
    8. Dante Edme-Sanjurjo & Mathilde Fois Duclerc & Yannick Lung & Julien Milanesi & Fabienne Pinos, 2020. "The Eusko’s trajectory. Hypotheses to understand the success of the complementary local currency of the Northern Basque Country," Post-Print hal-02986127, HAL.
    9. Corentin Elissée & Frédéric Hayek & Pascal Lafourcade & Ariane Tichit, 2022. "La blockchain : avenir des monnaies locales ?," Post-Print hal-03819019, HAL.
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    Keywords

    Blockchain; Cryptocurrency; Local Currency;
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