What determines demand for digital community currencies? OurVillage in Cameroon

Arbeitspapier

Community currency systems are now turning to digital methods to increase the social outreach of member households in remote areas, mitigate detrimental effects in times of crises, and promote community social cohesion. The resilience of digital community currency systems depends on a set of decisive factors including stability, sustainability, and technical functionality. OurVillage in Cameroon is a socio-economic project that aims to increase and promote economic activity through the introduction of a blockchain-based local community currency system. This paper explores the potential of electronic complimentary payment systems by examining the underlying motivations for consumer use based on their socio-economics characteristics. We develop a demand estimate for the community currency, concentrating on the underlying environmental conditions of the target population. A demand study is helpful in order to observe the optimal conditions for goods' consumption, in this case the community currency system. The resulting estimation provides fundamental insights into the quality of the project and the determinants for successful implementation. Our findings have important policy implications, particularly for communities intending to introduce their own digital community currency systems.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 209/2023

Classification and Topics

• Classification: Wirtschaft ; Econometric and Statistical Methods and Methodology: General ; Institutions: Design, Formation, Operations, and Impact ; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems ; Microeconomic Analyses of Economic Development
• Subject: demand estimates ; community currency ; socio-economic development projects

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Pédussel Wu, Jennifer ; Metzger, Martina ; Neira, Ignacio Silva ; Farroukh, Arafet
• Event: Veröffentlichung
• (who): Hochschule für Wirtschaft und Recht Berlin, Institute for International Political Economy (IPE)
• (where): Berlin
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/271002
• Last update: 10.03.2025, 11:45 AM CET