Micro-currencies can lessen the economic damage of COVID-19

The disruption caused to businesses by national lock-downs puts severe strain on household incomes. Barter and its evolution, micro-currencies, could give the economy a lifeline.

At the moment, humanity is wrapped in fear because of the virus, SARS-CoV-2, and the COVID-19 pandemic that it is causing. Lock-downs on major cities around the world will be leaving a lot of workers without an income from anywhere from a couple of weeks to a number of months. The poorest are the ones affected the most by this since they tend to run out of national-currency/money quickly and already have limited income before the work stoppage, making it much more difficult for them to afford necessities when their employers cease operations.

With what MyCurrency wants to eventually accomplish, the economic effects of a pandemic could be reduced. Citizens would be able to comply with lock-downs and quarantines with less of a fear of being without an ability to purchase what they need during that duration. One side benefit of this is that there would be less resistance to the government that’s implementing it, making efforts to contain pandemics more effective.

How could MyCurrency help that happen? Barter could make a comeback in times when a shock to the economy causes the supply chain to break down. For example, a person under lock-down could exchange a bottle of homemade rubbing alcohol, used for disinfecting surfaces — and currently out of stock as people panic buy — for a chicken that the person’s neighbor raises in their backyard. People may be left with no options except extreme measures like this to procure what they need when the economy as they knew it breaks down.

With MyCurrency, if you can provide something of value to the locked down economy — whether it’s DIY face masks, grocery delivery services or prepared foods delivered to customer homes, you can exchange points redeemable in your businesses’ product/service for basic necessities.

Trade of micro-currencies like this is an evolved form of barter, that effectively monetizes barter items. This expands the usefulness of cash-free trade, which is especially useful when existing business relationships and the financial system that underlies it are disrupted by shocks like the coronavirus pandemic.

With this sort of micro-currency powered barter, everyone in a crisis can focus on taking care of themselves and helping others, by being productive and providing the rest of society with the goods/services they need, instead of worrying about their depleting cash reserves.





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