Across the country in various towns, people are printing private currencies backed by American dollars. USA Today reports that there are at least five different private currencies circulating in the country.
Perhaps the most successful example is the Berkshare in the Berkshire area in Massachusetts. Over 2 million of the Berkshares are in circulation and are accepted by many local businesses including five banks. Advocates of the programs say they increase demand for local goods. Businesses are using the new fiat currencies as a way to give discounts to locals. The shops that accept the private fiat money might earn extra sales by catering to users of new currencies. Banks benefit from the program by receiving dollars in exchange for Berkshares.
If these monies aren’t being printed into hyperinflation, maybe that offers some evidence for the efficiency of the private sector in generating currencies. The Federal Reserve should lift its legal tender laws and allow private currencies to compete with American dollars. We likely would see Americans move their money to a safer and less inflationary currency.