Designing solidarity cryptocurrency: a path to foster borderless local development

The solidarity economy is an alternative economic arrangement recognized as capable of promoting sustainable development. In this model, community currencies are fundamental drivers for the circulation of local wealth and the creation of cooperative and solidarity relations among users. However, the very model of these currencies, based on social relations and territorial proximity, makes it challenging to scale and sustain their impact. Cryptocurrencies—and blockchain, the underlying technology—hold promise for scaling community currencies and creating a solidarity cryptocurrency. Some initiatives worldwide have experimented with the development of solidarity cryptocurrencies. However, this is a paradoxical process with risks not yet fully understood. In this study, we draw on the concept of tecnologia social and the design ethnography of an in-the-making solidarity cryptocurrency to propose six design principles and sixteen corresponding strategies for implementing a solidarity cryptocurrency. These design principles provide an initial guide for practitioners and policymakers who seek to create initiatives to scale the socioenvironmental impact of community currencies.