local currency

From the Transition Free Press:

(Issue No. 1, June 2012)

"A physical or electronic tender circulating in a particular area or community, to facilitate the circulation of goods and services locally.  It only has value among people, organizations, or businesses that have agreed to exchange it.  It is not part of the money supply recognized by the central bank – it is a parallel currency.  However, to create confidence, it is usually pegged to, and exchanged for, the national currency."

(read more at the Transition Free Press)