With a Spanish city set to create parallel currency, is the EU on the brink of losing monetary control?

The European Union (EU) was originally setup to be a trade union that expanded decades later into a monetary union.  But with the European Central Bank (ECB) at the heart of financial destruction created in nations in Southern Europe, several peoples within these insolvent countries are now fighting back with the use or establishment of alternate forms of currency.

On Oct. 24, an official in the city of Barcelona announced that the municipality is planning to engineer a parallel currency to the Euro, and forge ahead with a localized form of money that goes far beyond the black market currencies now being seen in places like Greece and Argentina.

Over the next six months, Barcelona’s left-wing city council plans to roll out a cash-less local currency that has the potential to become the largest of its kind in the world. The main goal of the project, according to a council spokesperson, is to boost economic opportunities for local businesses and traders.

The idea is for local stores and residents to be able to exchange euros for the new currency at a one-to-one parity, and use it to purchase products and services at a discount or with other kinds of incentives. But it doesn’t end there: the new parallel currency may also be used to pay certain subsidies, taxes and local services such as public transport, reports El País. Municipal workers could also receive part of their salary in the new money.

Barcelona will not be the first European city to launch such a scheme. Local currencies are all the rage these days. There could be as many as 3,000 forms of local money in use around the globe, says Community Currencies in Action, a global partnership promoting such schemes that is part-funded by the European Union’s Regional Development Fund. Which begs the question…

Why’s the EU promoting parallel local currencies around the world? – Wolfstreet

This announcement in the City of Barcelona comes less than a week after the EU’s high court ruled that Bitcoin was a legal de facto currency, and could not be taxed as if it were an investment or collectible.  And with the Greek financial crisis that has lasted seven long years shows no sign of being resolved, the people there have already instituted an alternate currency known as the TEM for commerce and payment for services.


Central Banks no longer function to facilitate the growth and expansion of domestic economies and instead simply print money to allow massive speculation within the banks and paper markets.  And so it is no wonder that new alternative and parallel currencies are springing up in countries throughout the Eurozone since the Union appears to fear the revolutionary consequences of austerity more than they fear competition with the Euro.

Kenneth Schortgen Jr is a writer for Secretsofthefed.comExaminer.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.

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