Over a decade ago, a brave free-market entrepreneur decided to address the problem. The Liberty Dollar, created by Monetary Architect Bernard von NotHaus, was the first silver-based alternative to the US Dollar. Liberty Dollar produced silver Libertys and certificates, and based the value of 1 troy ounce of silver on a scale that evolved over time to take into account the devaluation of the US Dollar. This system allowed the value of silver to fluctuate while not affecting day-to-day transactions. The system was so ingenious, in fact, that in 10 short years it increased in value 500%.
While the Liberty Dollar solution wasn’t perfect, it did offer a practical solution and alternative to our diseased Federal Reserve system. When Rob Gray joined the Liberty Dollar alternative currency, he quickly noticed a few flaws with the Liberty Dollar system, most notably the problem that there was no concentrated effort to develop a national database of participating merchants. So before long, he set out to solve this challenge and develop an alternative currency of his own.
During the search for a top-quality mint, Gray uncovered that he was not the first person to “go it alone”. He discovered several other copy-cat alternative currencies, all of which followed at least some of the initial Liberty Dollar formulas. While the designs and strategies were different, the underlying formula used to determine the value of the currency was the same.
It quickly became apparent that, even though these groups compete with each other, the effort and success of each currency helps the entire organization. The true mission of these alternative currencies is to establish silver as a common medium of exchange. Therefore, if one of the competing currencies succeeds and is able to spread the message successfully in a region, then any other currency that follows the same model can trade with these merchants as well.
The term “Complementary Private Competing Currencies” was created to label the groups that constructively compete with each other to further the mission.
Read More: Value for Value