Chiemgauer notes circulate alongside the euro in Bavaria. Validation stamps, expiry dates and merchant conversion fees shape how long they stay in use and where the money goes.
Every six months, holders of Chiemgauer notes need to buy a validation stamp. The notes expire after three years, even if stamped, putting a cost on holding them and nudging people to spend.
The currency runs alongside the euro. Participating merchants accept it from customers as a way to keep more spending within the region. Physical money can also attract collectors: official US coin issues belong to a different monetary system, but may draw numismatic interest for the same reason.
Complementary currencies depend on businesses and consumers agreeing to use them. In the United States, merchant tokens known as "good-for" trade tokens circulated from the late 18th century to the mid-20th century. An estimated 300 complementary currencies are now in use. Examples have been reported in Europe, with others in Brazil.
Christian Gelleri, an economics teacher at Traunstein High School, developed the Chiemgauer with his students in 2003. They wanted to help local businesses losing customers to chain stores. The currency takes its name from the Bavarian region. In Traunstein, one Chiemgau is accepted as equal to one euro, though the notes are not legally convertible into euros.
German law prohibits printing and using money other than euros, according to the source account. It says users must join the Chiemgau e.V. association. The Deutsche Bundesbank has tolerated the arrangement, the account says, but that does not amount to general authorization for other groups to issue money.
A stamp for a 10-Chiemgauer note costs €0.30. Holders must buy one twice a year, and the notes still expire after three years. This charge is a form of demurrage, a cost attached to holding money over time rather than spending it.
Merchants can exchange accumulated Chiemgauer for euros, but pay a 5% fee. The charge supports the currency's nonprofit organization and local nonprofit groups. In practice, that makes the currency more useful for purchases within its participating network than for businesses looking to recover euro cash without a cost.
Christian Gelleri says about 5 million Chiemgauer are spent annually. More than 200,000 Chiemgauer have been purchased using euros. Notes come in denominations of 1 and 2 Chiemgauer. Other notes are worth 5 or 10, while the higher denominations are 20 and 50. Electronic payments are also available through a special card linked to regular bank accounts.
A vendor selling Mediterranean food in Traunstein told Deutsche Welle in a June interview that Chiemgauer earnings went toward purchases at an organic food shop. That reuse is the intended mechanism: a participating business can pay another local merchant, keeping the currency moving instead of converting it immediately.
Researchers at Lund University have studied complementary currencies. Work has also been conducted at São Paulo Business School and HEC Montréal Business School. Brunel University London and Maastricht University have studied the topic as well. Lund University participant Ester Barinaga has linked local purchasing with shorter supply chains, since vendors may buy more goods produced nearby.
Some schemes tie the currency directly to environmental goals. Vilawatt rewards in Viladecans, Spain, encourage energy savings. In parts of Indonesia and the Philippines, Plastic Bank tokens are used to buy collected plastic bottles for recycling. The Massachusetts Institute of Technology and the International Energy Agency have estimated that freight transport accounts for about 8% of global greenhouse gas emissions. Environmental advocates cite shorter supply chains as a reason to support local currencies, though the source does not quantify the emissions effect of these schemes.
A stamped Chiemgauer carries a recurring validation cost and a fixed expiry, unlike ordinary cash. That does not guarantee local spending. Merchants must accept the currency, and customers must find goods they want to buy. Its practical reach depends on the size and activity of the participating network.
