It can be difficult to imagine that “Community Currency creates employment”. However, for example, if the local government produces Community Currency and increases the number of “work places” in the area, employment will be created. It also can be a key to prevent regional population decline. In this article, I will explain with the theme of “Community Currency to generate employment”.
At first, I will explain about employment issues in Japan from the viewpoints below.
・Overconcentration in the Tokyo Metropolitan Area
・Measures to Promote Local Employment
Overconcentration in the Tokyo Metropolitan Area
As shown in the phrase “Overconcentration in the Tokyo Metropolitan Area”, population increases in Tokyo despite the birthrate declining nationwide. According to the data of a research institute ※1, the population trends of Tokyo and rural areas from 2015 to 2045 are as follows.
The figure above shows that the current population already differs and the population gap between Tokyo and the province will widen. Another thing is job opening-to-application ratio. Currently it is high nationwide, but according to the data of “Employment Introduction- Effective Job Offering Rate by Prefecture” by The Japan Institute for Labour Policy and Training, Tokyo is extremely high.
While the job offering ratio in Tokyo is more than 2, the national average is around 1.5. Higher job offering ratio means that more companies need more employees, and lower ratio means the opposite, that is, less employment.
Measures to Promote Local Employment
To prevent overconcentration in Tokyo, Keidanren (Japan Business Federation) and others recommend “U Turn Employment”, that is to return hometown and get a job.
However, the result is shown in the previous section, which means it is not effective at this time. Therefore, in addition to the government efforts, we need a system to create employment in the province, which can be done with Community Currency.
What is Community Currency?
Well, how can we solve those employment issues with Community Currency? I will explain the points below.
・What is Community Currency?
・Advantages and Disadvantages of Community Currency
What is Community Currency?
In the first place, Community Currency (Regional Currency) is a currency which can be used in a certain region. The legal currency in Japan is “Yen” and it can be used anywhere in Japan. On the other hand, Community Currency that was created in the region A can be used only in the region A.
A good example of Community Currency is “Ryukyu Coin”, which can be used in Okinawa, Japan. Okinawa prefecture is planning to issue Ryukyu Coin as its Community Currency, and Ryukyu Coin will be available in Okinawa prefecture. Ryukyu Coin is designed to be Blockchain based, just like Cryptocurrency, and they are setting up equipment for payment within Okinawa prefecture.
Since Ryukyu Coin is planned to be exchangeable with other Cryptocurrencies, overseas money will also flow in easily. They have another strategy to increase the needs for Ryukyu Coin; to provide goods that can be purchased only by Ryukyu Coin.
If it becomes listed at exchanges, the circulation volume of Ryukyu Coin will increase. Then, there will be more opportunities to use Ryukyu Coin, and more money will be used in Okinawa prefecture.
Advantages and Disadvantages of Community Currency
The greatest advantage of Community Currency is, as mentioned above, the revitalization of local economy. It also has an advantage that it makes easier to form communication in the community by adopting a mechanism like PEACE COIN described in the next section.
On the other hand, the disadvantage of Community Currency is that available places and services are limited within a certain region. Since it cannot be used nationwide like the legal currency, the demand will not increase without doing proper operation. Also, the cost of issuance and management can be a disadvantage if there are central administrators for the operation of the currency.
Create Employment with Community Currency – the Case of PEACE COIN
Now you understand the advantages of Community Currency.
Here I explain about PEACE COIN and how it creates employment.
PEACE COIN is Cryptocurrency which aims at visualizing the values produced by the work that has not been spotlighted so far.
Compensation for Domestic Labor: What is Visualization of Values?
The work that has not been spotlighted is, for example, “Domestic Labor”. Although cooking and laundry are hard work, there is no particular consideration for compensation. In Japan, there are still many cases where women are in charge of domestic work.
There are many couples that the husband is working, and the wife is a full-time housewife, or working in a short time and taking charge of general household chores. Do you tell the word “Thank you” to your wife who is unpaid and responsible for general housework?
Mechanism of PEACE COIN
The mechanism of PEACE COIN has two aspects; the more you use, the more coin you will get (like a pointing system), but it will depreciate if you don’t use it. In other words, if you store PEACE COIN, it will decrease. So you’d better use more and more PEACE COIN. Since it is implemented on Blockchain, there is no central controller and no administration cost occurs.
PEACE COIN can be sent with the feeling of “Thank you” for the trivial matter of daily life. For example, a husband sends PEACE COIN to his wife with the feelings such as “Thank you for getting up early and cooking” and “Thank you for doing laundry every day”, etc. As you can attach a message upon remittance, it will convey more “Thank you” to your partner.
How to Create Employment with PEACE COIN?
By introducing PEACE COIN, it is possible to create local employment. For example, you can create jobs like the followings by using PEACE COIN.
・Work to protect local specialty products
・Garbage picking at regional festivals
・Cleanup work in the area managed by the government
If the government and local companies conduct these kinds of activities, the number of “work places” will increase. Increasing employment will prevent population decline, as it can be a reason for people to return or not to flow away from the region. Increasing population of the area will lead to increase in employment, which can generate a good spiral.
Furthermore, attaching a message with PEACE COIN, by using its function, will create relationship with other people and you will be motivated for the job. Also, the mechanism of PEACE COIN that it will depreciate if stored encourages the users to use the coin, and PEACE COIN will circulate in the community. Then there will be more works in the region, and employment will increase accordingly.
Thus, depending on the structure of the Community Currency, you can create more work places in your region with the currency. It is difficult for the local authority with no financial resources to do it in the legal currency, but it can be realized with Community Currency. Since you cannot rely solely on the national government, the local authorities need to think about creating employment individually.