While local currencies, considered "gift certificates" according to Canadian law,  are not new, this one is unique. One of the Gulf Islands between Vancouver Island and mainland British Columbia, Salt Spring Island, Canada has the only alternative local currency which is 100% backed by its national currency - the Canadian dollar. The designs, initially released 15.8.2001,  utilize wonderful themes and historic figures, prepared by local artists and printed in Canada with state-of-the art security features.  

And if that wasn't enough, Salt Spring Island, population 10,000, established it's own non-profit Salt Spring Islands Monetary Foundation (IMF) and then they took the bold step of ensuring that 20% of the Reserve Fund used to back their $$ would be held with Canadian Gold Maple Leaf coins. Backing of paper currencies with gold has long been discontinued by national governments.

The Salt Spring Islands $$ dollars came about a result of studying other island nations economies and finding that each had their own currency. Then local currencies were studied and found that most failed because of a lack of backing. So with this in mind, the Sustainable Salt Spring Island Coalition recommended a local currency which had an expiration date after which any unredeemed currency would represent a "profit".  The profits are used to sustain the program and for worthwhile community projects and at the same time they promote local commerce and goodwill.

The expiration date was established as 2 years after the release date, when holders could exchange the notes for new ones, or Canadian dollars. Since Salt Spring is a tourist area, a number have been kept as souvenirs thereby enhancing their value.

I particularly like the $$100 Dollar design as it is the first note I have found in North America to honor a person of Asian ancestry. It features Kimiko Okano Murakami, a Japanese Canadian who was sent to an internment camp during WWII. Her family's land, property and possessions were confiscated by the government and sold. But she returned to Salt Spring in 1954 to farm again, and to be an active member of the community. Mrs. Murakami died in 1997. I spoke with her daughter about the internment camp period and she intimated how difficult it was for the family. No amount of recognition can erase that difficult period, however, she said they were proud  to see their mother and family being recognized in this context. In the foreground of the note face is a picture of Mrs. Murakami and her husband in one of their farm fields. The banknote back features Mount Maxwell from a painting by Robert Bateman.

Starting with the 10$$ and 20$$ issues, the highest level of security features were incorporated from  AlderTech Int'l, Toronto using their Level 2 Halo, Sentinel and Wicker 2000 proprietary security features.

Salt Spring $$ are accepted by three islands banks, Bank of Montreal, Canadian Imperial Bank of Commerce and the Island Savings Credit Union at par with the Canadian dollar and since March 2002 these notes were available in local ATM machines. In addition, all major businesses and 95% of all small businesses on the island accept $$ with some offering premium exchange rates to further support the local community..

Limited edition signed artist's PROOFS and printers PROOFS are available from the printer Alder Tech International in Toronto, Canada. Clearly the most well thought out local currency program, with something for everyone - local merchants, local charities, tourists, currency collectors and most importantly, the IMF accountants. This local currency program seems to have all the necessary ingredients for long term success, something that has eluded most local currency programs.