Circles is a powerful tool for communities to provide each other with a basic income. For Circles to work, it requires strong community ties and a proactive commitment to creating value in the system by providing products and services in exchange for CRC. Creating circular local exchange loops is one of the most important aspects of a sustainable economy. It's vital for our business partners to create these loops by providing their supplies by using their CRC while offering their products in CRC as well. Check out the video below to see how these economic circles work now in the Berlin Pilot Project.

Empirical studies suggest that the presence of a complementary currency in a local economy reduces liquidity risk by balancing the payments systems, reduces systemic risk by stabilizing the macro economy, and enhances the local multiplier effect and velocity of circulation. A complementary currency system has also been implemented in humanitarian-development projects where local development, community empowerment, and humanitarian intervention necessarily need to be linked.

Creating economic loops in the system happens when businesses get their supplies or individual needs from local sources. In the Circles system, this happens via CRC being used to cover some of the expenses for the business, while creating a local economic network. There are many examples of how our businesses and users circulate the CRC, giving value back to the local economy. In this video, you will find these examples of how businesses in our Berlin pilot project are circulating CRC by using them for their business and individual needs.