Circulation of a digital community currency
Abstract Circulation is the characteristic feature of successful currency systems, from community currencies to cryptocurrencies to national currencies. In this paper, we propose a network analysis approach especially suited for studying circulation given a system’s digital transaction records. Sara...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Nature Portfolio
2023-04-01
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| Series: | Scientific Reports |
| Online Access: | https://doi.org/10.1038/s41598-023-33184-1 |
| _version_ | 1797845935661776896 |
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| author | Carolina E. S. Mattsson Teodoro Criscione Frank W. Takes |
| author_facet | Carolina E. S. Mattsson Teodoro Criscione Frank W. Takes |
| author_sort | Carolina E. S. Mattsson |
| collection | DOAJ |
| description | Abstract Circulation is the characteristic feature of successful currency systems, from community currencies to cryptocurrencies to national currencies. In this paper, we propose a network analysis approach especially suited for studying circulation given a system’s digital transaction records. Sarafu is a digital community currency that was active in Kenya over a period that saw considerable economic disruption due to the COVID-19 pandemic. We represent its circulation as a network of monetary flow among the 40,000 Sarafu users. Network flow analysis reveals that circulation was highly modular, geographically localized, and occurring among users with diverse livelihoods. Across localized sub-populations, network cycle analysis supports the intuitive notion that circulation requires cycles. Moreover, the sub-networks underlying circulation are consistently degree disassortative and we find evidence of preferential attachment. Community-based institutions often take on the role of local hubs, and network centrality measures confirm the importance of early adopters and of women’s participation. This work demonstrates that networks of monetary flow enable the study of circulation within currency systems at a striking level of detail, and our findings can be used to inform the development of community currencies in marginalized areas. |
| first_indexed | 2024-04-09T17:46:58Z |
| format | Article |
| id | doaj.art-44efcc24e1c144b09d7d4b7635e6ff80 |
| institution | Directory Open Access Journal |
| issn | 2045-2322 |
| language | English |
| last_indexed | 2024-04-09T17:46:58Z |
| publishDate | 2023-04-01 |
| publisher | Nature Portfolio |
| record_format | Article |
| series | Scientific Reports |
| spelling | doaj.art-44efcc24e1c144b09d7d4b7635e6ff802023-04-16T11:14:59ZengNature PortfolioScientific Reports2045-23222023-04-0113111610.1038/s41598-023-33184-1Circulation of a digital community currencyCarolina E. S. Mattsson0Teodoro Criscione1Frank W. Takes2Leiden Institute of Advanced Computer Science, Leiden UniversityDepartment of Network and Data Science, Central European UniversityLeiden Institute of Advanced Computer Science, Leiden UniversityAbstract Circulation is the characteristic feature of successful currency systems, from community currencies to cryptocurrencies to national currencies. In this paper, we propose a network analysis approach especially suited for studying circulation given a system’s digital transaction records. Sarafu is a digital community currency that was active in Kenya over a period that saw considerable economic disruption due to the COVID-19 pandemic. We represent its circulation as a network of monetary flow among the 40,000 Sarafu users. Network flow analysis reveals that circulation was highly modular, geographically localized, and occurring among users with diverse livelihoods. Across localized sub-populations, network cycle analysis supports the intuitive notion that circulation requires cycles. Moreover, the sub-networks underlying circulation are consistently degree disassortative and we find evidence of preferential attachment. Community-based institutions often take on the role of local hubs, and network centrality measures confirm the importance of early adopters and of women’s participation. This work demonstrates that networks of monetary flow enable the study of circulation within currency systems at a striking level of detail, and our findings can be used to inform the development of community currencies in marginalized areas.https://doi.org/10.1038/s41598-023-33184-1 |
| spellingShingle | Carolina E. S. Mattsson Teodoro Criscione Frank W. Takes Circulation of a digital community currency Scientific Reports |
| title | Circulation of a digital community currency |
| title_full | Circulation of a digital community currency |
| title_fullStr | Circulation of a digital community currency |
| title_full_unstemmed | Circulation of a digital community currency |
| title_short | Circulation of a digital community currency |
| title_sort | circulation of a digital community currency |
| url | https://doi.org/10.1038/s41598-023-33184-1 |
| work_keys_str_mv | AT carolinaesmattsson circulationofadigitalcommunitycurrency AT teodorocriscione circulationofadigitalcommunitycurrency AT frankwtakes circulationofadigitalcommunitycurrency |