Monday, March 29, 2010

Brazilian Central Bank Backs "Social Money"

I don't post much these days about what I find in my explorations around the money space. That is in part because my energies have been focused more on accumulating money rather then on the discussions and explorations into alternatives.

With this in mind I am part of several email lists etc. and this one came across my desk today. I think it is a very interesting email talking about agreements between the Brazilian Central Bank and community based currency projects. This could be one of the first instances in which a central bank has backed a community currency project. It will be interesting to see how this devlops

From: Miguel Yasuyuki Hirota
To: undisclosed-recipients:;
Subject: [cc_research] The Central Bank of Brazil works to strengthen
community currency initiatives
Message-ID: <>
Content-Type: text/plain; charset=UTF-8; format=flowed

Dear all,

I'd like to share the information I've just got from Brazil.

The Secretaria Nacional de Economia Solid?ria (SENAES), which
belong to the Brazilian Ministry of Labour and Employment (MET), has
just issued its news letter

and on the page 1 you can read the following article (I translated
it into English).


Title: Coopera??o com banco central (Cooperation with the Central Bank)

The cooperation agreement between SENAES and the Central Bank aims
to realise studies on community banks and on social money, envisioning
the creation of the monitoring and evaluation mechanism and of the
development of this sector in Brazil. After a decade of many
articulation and mobilisation of the solidarity economy movement, with
the support of SENAES, the recognition by the Brazilian State was won,
by way of this terms of cooperation, that territoty-based communities
(small municipalities, neighbourhoods) can build their monetary authority.

For the first time the Central Bank of Brazil recognised the
existence of this tool called "community banks and social money" and
their important as social technology which generates financial
inclusion. With this, community banks will be less vulnerable, both
from the formal viewpoint - as definitions on their function,
methodology, characteristics, attributes, goals and concepts are
established - and SENAES closed a cooperation agreement with the Central
Bank also for the more social visibility to be achieved.

At this moment, a working committee and the work agenda it will
realise by itself are being created. With the concretisation of the
partnership there will be the elaboration of norms which should orient
actors who want to know, support and develop community banks which use
social money. SENAES is proposing the realisation of five public
hearings so that the society should join, together with the solidarity
economy movement, in the sense to warrant the more participation in the
elaboration of referred norms.

On the basis of this agreement, the community bank initiatives
under way win a new institutional framework, enabling the realisation of
new strategic partnerships for their development. On top of that, these
banks will be benefitted with the enhancement of of incentive and
promotion policies, and the institutional environment will be quite
favourable for the consolidation of such policies, which means that
public resources for training activities, technical assistance and
adequate credit lines.

1 comment:

King of the Paupers said...

"the Central Bank of Brazil recognised the
existence of this tool called "community banks and social money"
Jct: Fascinating good news. Imagine if the Argentine government has supported the time-barter creditos trueque groups that were so successful they were eventually hurt by counterfeiters. Imagine all the good they would have continued doing providing interest-free credits with government help to prevent the sabotage. So, community currencies should flourish in Brazil, especially with Banco Palmas leading the way.