DEFINITION of 'Totnes Pound'
An alternative currency of Totnes, in Devon, United Kingdom. The Totnes pound is intended to support the local economy, and is an initiative of the Transition Town Totnes Economics and Livelihoods group. The currency was launched in March 2007, and has a value of one Totnes pound to one pound sterling. The currency is backed by sterling that is held in a bank account. The launching group believes that "economic localization is considered to be a key aspect of the transition process, and local currency systems provide the opportunity to strengthen the local economy whilst preventing money from leaking out."
BREAKING DOWN 'Totnes Pound'
The benefits of the Totnes pound, as listed on the Transition Town Totnes website, are: To create a stronger local economy by keeping money circulating within the community; to encourage people to think and talk about how they spend money; and to encourage more local trade and encourage tourists to visit local businesses.
The Totnes pound notes (bills) are printed locally on plasticized paper. The Totnes pound has inspired other local currency projects, including the Lewes pound in Lewes, East Sussex.