The Chiemgauer is a regional currency in Prien am Chiemsee, Bavaria, Germany.

It was created by Christian Gelleri in 2003 and named after the Chiemgau, a region around the Chiemsee lake.

Gelleri was inspired by the economist Silvio Gesell.

The Chiemgauer is intended to increase local employment, support local culture, promote sustainability, and stimulate the local economy.

Between 2003 and 2015, the demurrage rate was 2% per quarter, or 8% per year.

The Chiemgauer inspired the creation of the Stroud pound in Stroud, England in 2009.

Characteristics

Demurrage

Bills of 1, 2, 5, 10, 20, and 50 Chiemgauer are issued.

To maintain an individual bill's validity, a "scrip" corresponding to 3% of the banknote value must be paid every six months, as of 2021.

For electronic money, the depreciation rate is calculated daily (6% divided by 365 days = 0.016% per day).

This system, called demurrage, is a form of currency circulation tax invented by Silvio Gesell.

Since it loses value daily (or 3% every six months for the paper version), users are incentivized to spend the money faster, thus speeding up the velocity of money.

The notes have an expiry date after which they need to be renewed with a sticker costing 3% of their value.

Gesell argued that a higher velocity of money helps combat deflation.

Interest-free

Since 2007, Chiemgauer can be saved without interest at a social cooperative called REGIOS.

Likewise, a microcredit program for businesses and nonprofits has existed since 2010 and loans are available in amounts ranging from €1,000 to €20,000.

Interest is calculated at a rate of 9%, but when a loan issued in Chiemgauer is paid back on time and without fault, the entire interest costs are paid back to the debtor.

Democratic governance

As of 2021, the Chiemgauer organization, Chiemgauer e. V., is a limited-liability non-profit organization located in Traunstein, Bavaria, Germany.

A board of executives is elected every two years.

Everyone who uses the Chiemgauer is a member of the organization.

Members can gain the right to vote in assembly by paying a small annual membership fee.

The rules for the distribution, circulation, usage, demurrage rate, and administration of the Chiemgauer can be changed through the democratic decision-making process.

For example, the idea that the demurrage rate should not start until after owning the currency for 90 days became an official rule after it was proposed by a businessman and accepted by the democratic assembly.

Rules

The Chiemgauer e. V. assembly approved the following basic rules in 2012 and 2016:

  • The value of the Chiemgauer is fixed to the euro.
  • Consumers can change euros into Chiemgauer at about 50 issuing offices within the districts of Rosenheim and Traunstein.

54% of businesses do not convert any Chiemgauer into euro.

Businesses accept the Chiemgauer as tender up to the last day of expiry.

Businesses that have Chiemgauer account can deposit the Chiemgauer up to two weeks after expiration.

As of 2025, there are two major barriers which prevent the Chiemgauer's usage from expanding.

Businesses cannot pay taxes with the Chiemgauer since they are required to pay taxes using the euro.

German law also requires employers to pay employees using the euro, and there are no exemptions even if the employer and the employee both agree to paying the employee using other currencies.

Data

{| class="wikitable"

|+ style="text-align: center;" | Chiemgauer data for select years

|-

! !! 2006 !! 2010 !! 2014 !! 2015

!As of

23 Jan 2022

|-

| Total users || 1,735 || 3,049 || 3,889 || 3,922

|3,766

|-

|     No. businesses || 540 || 602 || 593 || 561

|416

|-

|Chiemgauer money supply || €119,000 || €495,000 || €695,000 || €787,000

|€1,076,790

|-

|     Paper Chiemgauer ||€102,000 || €187,000 || €155,000 || €165,000

|n/a

|-

|     eChiemgauer || €17,000 || €308,000 || €540,000|| €622,000

|n/a

|-

|     Pct. eChiemgauer || 14% || 62% || 78% || 79%

|n/a

|-

| colspan="5" style="text-align: left;" | Transactional figures

|

|-

|     Turnover || €1.27 million|| €5.00 million || €7.43 million || €7.61 million

|n/a

|-

|     Nonprofit revenue || €16,800 || €45,000 || €60,700 || €65,600

|n/a

|-

|     Velocity of money, V || 6.4 || 5.1 || 5.2 || 4.3

|n/a

|-

|     V multiple over euros || 2.4 || 2.6 || 3.2 || 2.9

|n/a

|}

In 2005, it was reported that 70% of users enjoy shopping with the Chiemgauer, and 81% of users like the Chiemgauer's circulation incentives.

Christian Gelleri reported that the turnover rate is saturated and there are barriers to further expanding the usage of the Chiemgauer as of 2025.

See also

  • BerkShares
  • Complementary currencies
  • Urstromtaler
  • WIR Bank
  • Wörgl

Notes

References

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