Instructables

In Philippine law, is there anything concerning alternative currencies?

Google turns up null. I just want to know if there's any law or central bank policy regarding alternative currencies.

(Just got interested because of all of the alternative currencies springing up all over the U.S.)

What do you mean by alternative currency?

nutsandbolts_64 (author)  mpilchfamily1 year ago
Let's say a small community (or a city, perhaps?) decides to print its own currency. This currency is redeemable only in the shops and businesses that reside in that community (or city). This currency is also exchangeable for national currency, i.e. money exchange businesses in that locality accept the currency.

I haven't heard of an instance of that here in the Philippines, ever, so I'm curious as to if there was a law concerning that kind.

And in the context of bitcoins, I've read that nowadays, U.S. Law includes those money exchange businesses that trade for alternative currencies, like bitcoins. It got me thinking about a possible mirror of that here in the Phils.
Then you need to talk to a lawyer.

Chances are nothing says you can't start a similar kind of venture. The problem is getting people to go for it. In order to make that sort of thing work you'll have to be the one with the regular currency to back up the new one you create. Plus you need to have some really good reasons for why people will want to trade in there legal tender for yours. What can you offer that would make people do that? If for some reason everyone involved wants to cash out and you don't have the legal tender to give back then you will find yourself in a bad legal battle.

Also consider the struggles that come with maintaining a currency. You need to protect your currency from counterfeits. Otherwise you will find yourself in a position where you run out of legal tender to give back to people.
I think the poster is talking about bitcoins and similar schemes.