A currency that is used in a particular region is referred to as local money. A community currency is frequently used as a medium of exchange inside a particular community, while a regional currency refers to local money used in a larger area.
Local currencies are typically formed for a variety of purposes, including occasionally to promote spending among local businesses and associations. Sometimes they are made because a group of people doesn’t believe in the state’s official form of money. This phenomena of mistrust are not only not new, but also as old as money itself. Modern economics may appear to be more structured and stable, but many regional economies, particularly those in South America, are facing high rates of inflation, which is forcing people to look for other ways to exchange products.