A complementary currency is a currency or medium of exchange that is not a national currency but supplements one. Complementary currencies are not legal tender and the parties exchanging them decide their value.
Forms of complementary currencies are community currencies, sectoral currencies, and private currencies. Complementary currencies are also called alternative currencies. Mutual credit is a form of complementary currency.
What is the purpose of complementary currency?
Complementary currencies have specific purposes like increasing financial stability, recognition of informal economies, and promoting local businesses.
What are the advantages of complementary currencies?
The advantages of complementary currencies are that they cannot be spent outside of the economy circulate in. Some complementary currencies devalue fast. This increases monetary circulation and the usage of the currency.
What are the disadvantages of complementary currencies?
Complementary currencies have limited use and users can only spend them in certain economies or ways.
What are the most used complementary currencies?
Bitcoin and other cryptocurrencies are the most used complementary currencies. They are a trustless exchange of digital assets that takes place on the blockchain. Computers solve mathematical puzzles to verify cryptocurrency transactions. The sender and receiver do not require third parties to exchange cryptocurrencies.
Business24-7 aims to help those interested in cryptocurrency make safe and informed investing decisions. We are dedicated to offering our readers unbiased reviews of leading cryptocurrency exchanges for traders at all levels. Cryptocurrency exchanges are included in our reviews if they are safe, liquid, regulated by proper authority, or decentralized.
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.