Although cryptocurrencies have been in use since 2009, they have not developed the essential characteristics of money. The fluctuations in the value of cryptocurrency shows it is not a reliable store of value. For example, while a Bitcoin was worth as much as $105,000 in January 2025, it lost almost 30% of its value in less than 3 months, dropping to $74,400 in April 2025.[footnote]Coinbase, \u201cBitcoin Price Chart,\u201d Coinbase, May 20, 2025, https:\/\/www.coinbase.com\/price\/bitcoin<\/a>. \u200c[\/footnote] Also, cryptocurrency is not a universally accepted medium of exchange because it's not easy to get and not all businesses accept it.[footnote]Paul Krugman, \u201cIs This the End Game for Crypto?\u201d New York Times,<\/em>\u00a0November 18, 2022, https:\/\/www.nytimes.com\/2022\/11\/17\/opinion\/crypto-banks-regulation-ftx.html. \u200c[\/footnote] Significantly, unlike fiat money, cryptocurrency is not widely trusted.<\/p>\r\n Mobile payments<\/strong> aren\u2019t a form of currency but a way of accessing financial services and conducting transactions on a mobile device. Although the definition of mobile commerce (m-commerce) differs somewhat based on authority, a working definition is sales transactions made on a mobile device like a tablet, smartphone, or smartwatch. Using this definition, research firm eMarketer projects that m-commerce will double between 2020 and 2025, reaching $728 billion which would represent approximately 44% of U.S. e-commerce.[footnote]eMarketer, \"Rise of Mcommerce: Mobile Ecommerce Shopping Stats & Trends in 2022,\" Insider Intelligence, April 15, 2022, https:\/\/www.insiderintelligence.com\/insights\/mobile-commerce-shopping-trends-stats\/<\/a>[\/footnote]<\/p>\r\n\r\n[caption id=\"attachment_12801\" align=\"alignright\" width=\"366\"] Factors limiting adoption of mobile wallets include fears about security, the proprietary nature of apps, and what Bluefin refers to as \u201cunnecessary payment friction\u201d caused by having to switch between mobile wallets based on where a consumer is shopping. Also, in developed countries, there isn\u2019t a compelling point of pain that would prompt a switch to mobile payments. Visa and MasterCard are widely accepted, and use isn\u2019t limited by type of device or operating system as is true with Apple Pay, Android Pay, and Samsung Pay. However, the consensus is that \"as smartphones and internet connectivity reach a saturation point, consumers will likely start to view their phones more as banking and shopping devices.\u201d[footnote]Bluefin, \"Mobile Wallets \u2013 Still Not Living Up to Expectations,\" Bluefin, February 15, 2019,\u00a0https:\/\/www.bluefin.com\/bluefin-news\/mobile-wallet-not-living-up-to-expectations\/<\/a>[\/footnote]<\/p>\r\n The fastest growth in mobile money services is in underbanked markets in Africa, Asia, and Latin America. The World Bank reports that 69 percent of adults now have access to a bank account or an account through a mobile money provider. World Bank President Jim Yong Kim expresses the economic development view, stating \u201cHaving access to financial services is a critical step towards reducing both poverty and inequality, and new data on mobile phone ownership and internet access show unprecedented opportunities to use technology to achieve universal financial inclusion.\u201d[footnote]Lisa Cornish, \"Insights from the World Bank's 2017 Global Findex Database.\" Devex, April 20, 2018, https:\/\/www.devex.com\/news\/insights-from-the-world-bank-s-2017-global-findex-database-92589<\/a>[\/footnote] However, because mobile wallets are limited by access to technology and internet infrastructure which may be limited in some rural or economically disadvantaged areas, it is not yet a universal substitution for money.<\/p>\r\n Regions develop \u201ccurrencies\u201d to support a range of local economic development and sustainability initiatives. According to The Schumacher Center for a New Economics, a nonprofit promoting local resilience, regional currencies support local businesses and help to educate consumers about how their money circulates in the local economy. [footnote]Schumacher Center for New Economics, \"Local Currencies Program,\" Center for New Economics, 2019,\u00a0https:\/\/centerforneweconomics.org\/apply\/local-currencies-program\/<\/a>[\/footnote]<\/p>\r\n The Center has been involved in the development of a number of local currencies<\/a>, including BerkShares<\/a>, a currency specific to Western Massachusetts. Launched in 2006 and still in operation, the program currently involves a network of community banks, approximately 350 locally owned businesses, and local citizens. The decorative BerkShares can be obtained at participating bank branches at an exchange rate of one dollar to one BerkShare. BerkShares can be spent at face value, 1 BerkShare equals one dollar, at participating businesses. Although this last category of currency doesn\u2019t have a wide impact at the current scale, there is potential to boost the local economy by encouraging residents and tourists to spend at local businesses.<\/p>\r\n What constitutes an alternative currency is open to debate. Right now we\u2019ll consider three categories of currency: cryptocurrencies, mobile commerce, and regionally-based currency. A point worth considering is that \u201ccurrency\u201d and payment processes are being transformed not only by technology but also by consumer trust (or the lack of it) in the financial system.<\/p>\n The “crypto” in cryptocurrency<\/strong> comes from the use of cryptography, or the study of complex codes, to make secure transactions with this type of digital or virtual currency. Cryptocurrencies that you may have heard about like Bitcoin or Ethereum, use blockchain technology that records, verifies, and stores transaction information across a decentralized network of personal computers. [1]<\/sup><\/a> Instead of one person or organization being in charge of record keeping like on a spreadsheet or within a bank, blockchain stores duplicate records on many computers and the processes that ensure the legitimacy of transactions is also spread across that network. Theoretically, this technology has the potential to eliminate the need for financial intermediaries like banks.<\/p>\n Although cryptocurrencies have been in use since 2009, they have not developed the essential characteristics of money. The fluctuations in the value of cryptocurrency shows it is not a reliable store of value. For example, while a Bitcoin was worth as much as $105,000 in January 2025, it lost almost 30% of its value in less than 3 months, dropping to $74,400 in April 2025.[2]<\/sup><\/a> Also, cryptocurrency is not a universally accepted medium of exchange because it’s not easy to get and not all businesses accept it.[3]<\/sup><\/a> Significantly, unlike fiat money, cryptocurrency is not widely trusted.<\/p>\n Mobile payments<\/strong> aren\u2019t a form of currency but a way of accessing financial services and conducting transactions on a mobile device. Although the definition of mobile commerce (m-commerce) differs somewhat based on authority, a working definition is sales transactions made on a mobile device like a tablet, smartphone, or smartwatch. Using this definition, research firm eMarketer projects that m-commerce will double between 2020 and 2025, reaching $728 billion which would represent approximately 44% of U.S. e-commerce.[4]<\/sup><\/a><\/p>\n Factors limiting adoption of mobile wallets include fears about security, the proprietary nature of apps, and what Bluefin refers to as \u201cunnecessary payment friction\u201d caused by having to switch between mobile wallets based on where a consumer is shopping. Also, in developed countries, there isn\u2019t a compelling point of pain that would prompt a switch to mobile payments. Visa and MasterCard are widely accepted, and use isn\u2019t limited by type of device or operating system as is true with Apple Pay, Android Pay, and Samsung Pay. However, the consensus is that “as smartphones and internet connectivity reach a saturation point, consumers will likely start to view their phones more as banking and shopping devices.\u201d[5]<\/sup><\/a><\/p>\n The fastest growth in mobile money services is in underbanked markets in Africa, Asia, and Latin America. The World Bank reports that 69 percent of adults now have access to a bank account or an account through a mobile money provider. World Bank President Jim Yong Kim expresses the economic development view, stating \u201cHaving access to financial services is a critical step towards reducing both poverty and inequality, and new data on mobile phone ownership and internet access show unprecedented opportunities to use technology to achieve universal financial inclusion.\u201d[6]<\/sup><\/a> However, because mobile wallets are limited by access to technology and internet infrastructure which may be limited in some rural or economically disadvantaged areas, it is not yet a universal substitution for money.<\/p>\n Regions develop \u201ccurrencies\u201d to support a range of local economic development and sustainability initiatives. According to The Schumacher Center for a New Economics, a nonprofit promoting local resilience, regional currencies support local businesses and help to educate consumers about how their money circulates in the local economy. [7]<\/sup><\/a><\/p>\n The Center has been involved in the development of a number of local currencies<\/a>, including BerkShares<\/a>, a currency specific to Western Massachusetts. Launched in 2006 and still in operation, the program currently involves a network of community banks, approximately 350 locally owned businesses, and local citizens. The decorative BerkShares can be obtained at participating bank branches at an exchange rate of one dollar to one BerkShare. BerkShares can be spent at face value, 1 BerkShare equals one dollar, at participating businesses. Although this last category of currency doesn\u2019t have a wide impact at the current scale, there is potential to boost the local economy by encouraging residents and tourists to spend at local businesses.<\/p>\nMobile Commerce<\/h2>\r\n
![\"Smartphone](\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/3807\/2015\/05\/21205656\/Phone.jpg\")
Figure 1. Use of mobile wallets is limited in areas that lack internet infrastructure.[\/caption]\r\n\r\nRegionally-Based Currency<\/h2>\r\n
Alternative Currencies<\/h2>\n
Cryptocurrency<\/h3>\n
Mobile Commerce<\/h2>\n
Regionally-Based Currency<\/h2>\n