Salt Spring Island in British Columbia has been using their own currency including silver coins for
almost 10 years now.
First of all, let us get one thing out in the open: Yes, Salt Spring Dollars are legal. We're not breaking any laws by issuing an alternative currency and you aren't breaking any laws by owning or using them. Everyone asks that question so we thought we'd start there.
Legally, Salt Spring Dollars are gift certificates, which is how they're treated (See the Canada Revenue Agency website for more information.) When you buy a Salt Spring bill (one dollar, two dollar, five, ten, twenty, fifty, or one hundred dollar bill) you're buying a gift certificate from the Salt Spring Island Monetary Foundation which we will honor if you ever choose to redeem it with us. In the meantime you can redeem it for goods and services. Banks and businesses can redeem the Salt Spring Dollars for Canadian cash through special trust accounts set up by the SS IMF at the three financial institutions on the island.
If you think about it, that's basically the definition of national currencies like Canadian dollars – except they don't keep a trust fund.
The next thing everyone wants to know is why Salt Spring Dollars exist. Simply put, Salt Spring Dollars reflect our pride and love of this island and its community. The Salt Spring Island Monetary Foundation keeps an investment trust fund (to back the currency) and the investment's returns are re-invested on the island. Accumulated funds are available for community proposals on the basis of no-interest loans. This philosophy of "no usury" loans is fundamental to the concept of true community currency.
Salt Spring Dollars are beautiful currency with a community link, wide acceptance, excellent press, and unique designs. Whether you're a tourist using our money for the first time or an islander using it on a daily basis for your financial transactions, using Salt Spring Dollars is convenient and fun and good for the community.
http://saltspringdollars.com/about-us/
