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What determines demand for digital community currencies? OurVillage in Cameroon

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  • Pédussel Wu, Jennifer
  • Metzger, Martina
  • Neira, Ignacio Silva
  • Farroukh, Arafet

Abstract

Community currency systems are now turning to digital methods to increase the social outreach of member households in remote areas, mitigate detrimental effects in times of crises, and promote community social cohesion. The resilience of digital community currency systems depends on a set of decisive factors including stability, sustainability, and technical functionality. OurVillage in Cameroon is a socio-economic project that aims to increase and promote economic activity through the introduction of a blockchain-based local community currency system. This paper explores the potential of electronic complimentary payment systems by examining the underlying motivations for consumer use based on their socio-economics characteristics. We develop a demand estimate for the community currency, concentrating on the underlying environmental conditions of the target population. A demand study is helpful in order to observe the optimal conditions for goods' consumption, in this case the community currency system. The resulting estimation provides fundamental insights into the quality of the project and the determinants for successful implementation. Our findings have important policy implications, particularly for communities intending to introduce their own digital community currency systems.

Suggested Citation

  • Pédussel Wu, Jennifer & Metzger, Martina & Neira, Ignacio Silva & Farroukh, Arafet, 2023. "What determines demand for digital community currencies? OurVillage in Cameroon," IPE Working Papers 209/2023, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    • Handle: RePEc:zbw:ipewps:2092023
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    References listed on IDEAS

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    More about this item

    Keywords

    demand estimates; community currency; socio-economic development projects;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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