Exploring the potential of blockchain technology for community currencies: The case of ourvillage in Cameroon

Though blockchain-based community currencies enjoy increasing popularity, they are still an underexplored topic, which is reflected in the very limited amount of academic literature devoted to it specific features. This paper examines the potential of blockchain technology for the implementation of community currencies in general and in the "OurVillage" project in Cameroon in particular. The specific features of decentralisation, transparency and immutability and thus data security due to its ledger and consensus mechanism make the Blockchain technology particularly appropriate for the application within community currency systems. We show that blockchain-based community currencies offer various potentials, inter alia its integrity, its inclusiveness, its lower transaction costs, and its simultaneous immutability and flexibility in order to prevent technological obsolescence. We identify blind spots in literature on blockchain-based community currencies such as long-term sustainability considerations or strong conceptual issues related to the design and its specific features, principles and rules which influence voice, participation, distribution of benefits and the empowerment of community members and civil society. We also indicate challenges of blockchain-based community currencies arising from the specific technology and its regulation, e.g. interoperability with other networks, scalability, exposure of sensitive information to the network and definition of data-sharing protocols, but also the necessary regulatory compliance and the creation of a risk management strategy. Finally, the user-friendliness in form of handling and user interface of the community currency are major drivers for the inclusion of a diverse user base comprising also households with only limited technological proficiency.