Inside the German Town Where People Print Their Own Money
In the picturesque Bavarian region around Lake Chiemsee, a small but innovative experiment is underway. Residents in towns like Traunstein and Prien am Chiemsee are using their own local currency—the Chiemgauer—alongside the euro. Far from being illegal “play money,” this complementary currency is a deliberate tool designed to strengthen the local economy, encourage sustainable behavior, and keep spending circulating within the community.
The Chiemgauer was launched in 2003 as a school project at the Waldorf School in Prien am Chiemsee. Economics teacher Christian Gelleri and a group of students created it to explore how money could serve regional needs rather than just national or global markets. What began as a modest classroom initiative has grown into one of Germany’s most successful Regiogeld (regional money) schemes, with millions of Chiemgauer in circulation and acceptance by hundreds of local businesses across the districts of Rosenheim and Traunstein.
How the Chiemgauer Works
The Chiemgauer is pegged one-to-one with the euro: 1 Chiemgauer equals €1. Residents can exchange euros for Chiemgauer at authorized issuing points. The key twist is its built-in demurrage mechanism—a form of negative interest that discourages hoarding. Paper notes are valid for three months; after that, holders must affix a small stamp (typically costing 2% of the note’s value) to keep them valid. This encourages faster circulation, as people are incentivized to spend rather than save the local currency.
Businesses that accept Chiemgauer can exchange it back for euros, often with a modest fee that helps fund local nonprofits. The system also supports digital payments via a Regiocard, making it practical for everyday use at bakeries, shops, hairdressers, and other small enterprises.
A distinctive modern feature ties the currency to climate action. Residents can earn Chiemgauer by participating in environmentally friendly activities—such as car-sharing, installing solar panels, or other verified green behaviors. This “Climate Bonus” aspect directly links spending power to CO₂ reduction efforts, aligning economic incentives with ecological goals.
Goals and Reported Benefits
The primary aims of the Chiemgauer are straightforward:
- Boost the local economy: By restricting circulation to the region, it promotes shorter supply chains, supports independent shops over large chains, and keeps money flowing locally.
- Increase velocity of money: Thanks to demurrage, the Chiemgauer is said to circulate significantly faster than the euro, amplifying its economic impact.
- Support sustainability and community: Earnings from exchange fees and bonuses have funded local associations and nonprofits. Proponents point to measurable CO₂ savings and a multiplier effect where each euro converted into Chiemgauer generates additional regional value.
The currency is fully legal and backed by euros held in reserve. It does not replace the euro but complements it as a voluntary tool for regional resilience.
A Broader Trend in Germany
The Chiemgauer is not unique—Germany has seen dozens of regional currency initiatives over the years, inspired in part by historical experiments like the 1932 Wörgl “stamp scrip” in Austria, which used a similar demurrage system during the Great Depression to stimulate local spending. Yet the Chiemgauer stands out for its longevity, scale, and integration of ecological incentives.
Critics sometimes dismiss such schemes as idealistic or limited in scope, while supporters argue they offer a practical way to address globalization’s downsides, such as money leaking out of communities and weakening small businesses. Studies and user feedback suggest the currency has helped sustain local commerce, though its overall macroeconomic impact remains modest compared to the dominant euro.
In Traunstein and the surrounding Chiemgau region, colorful Chiemgauer notes have become a familiar sight. They represent more than just an alternative form of payment—they embody a community’s attempt to rethink money as a tool for local well-being, environmental responsibility, and economic self-reliance.
Whether this model can scale further or inspire similar projects elsewhere remains an open question. For now, it offers a fascinating glimpse into how ordinary people in a quiet Bavarian town are quietly printing—and spending—their own money to build a more sustainable future.
About The Author
