Complementary Currency - CC

DEFINITION of 'Complementary Currency - CC'

A currency used in combination with other currencies, such as a national currency, whose value is not based on traditional methods. A complementary currency is not considered legal tender and does not replace a national currency, but it can be used to encourage consumers and businesses to alter their behaviors. A complementary currency can also integrate time or real sources into its scale.

BREAKING DOWN 'Complementary Currency - CC'

An example of a complementary currency is the Toronto dollar, which is backed by the Canadian dollar and can be freely exchanged. The Toronto dollar is used to benefit the community by allocating a portion of the dollars spent to programs aimed at the poor and homeless. This currency is primarily used to buy and sell goods and services, rather than being traded on the open market.