The rise and fall of a digital currency project in Kenya

A complementary currency system to support trade among small businesses in Kenya received pushback from the central bank but sparked widespread local and international support. However, the initial enthusiasm was tempered by challenges that led to the project…
Pablo Mosciski MD · 3 days ago · 2 minutes read


Mobilizing Imaginaries: Grassroots Organizations and the Power of Change

Grassroots Initiatives and Counter-Imaginaries

Grassroots organizations are driven by local connections and often tackle issues neglected by traditional systems. They offer a unique opportunity to envision alternatives to mainstream economic frameworks.

Studies have explored the challenges faced by these organizations, such as balancing core values with institutional frameworks and the limitations of scaling up initiatives. However, the question remains: How can grassroots organizations mobilize counter-imaginaries to drive social change?

The Rise and Fall of an Alternative Currency System

This article examines the rise and eventual decline of a digital complementary currency project led by Grassroots Economics in Kenya.

Alternative Economies

Complementary currencies are alternative forms of money designed to foster local trade. Grassroots Economics' goal was to empower communities to issue their own currency and drive economic change.

At first, Grassroots Economics mobilized counter-imaginaries through community storytelling. They highlighted the positive social impact of their currency and emphasized its potential to transform economic practices.

Scaling Upwards and the Role of Technology

Grassroots Economics transitioned to a digital token system built on blockchain technology. This move attracted technology partners who believed in the potential of blockchain for social change.

A digital currency simulation was created to explore the scalability of the project. However, challenges emerged due to divergent priorities and speculative behaviors.

Unintended Consequences and Practical Implications

As the digital currency system scaled up, new pressures emerged. Users converted their digital currencies into Kenyan shillings, undermining the local economy.

Measures to address this issue led to unintended consequences, creating a rift between Grassroots Economics and the communities it served.

This case study highlights the challenges of using counter-imaginaries and external partnerships in grassroots organizations. It underscores the importance of aligning imaginaries, assessing donor agendas, and cultivating a shared commitment to avoid unintended consequences.

As grassroots organizations continue to seek technological solutions for social development, our framework on prefigurative imaginaries cautions against the risks of degeneration and fragmentation. Ultimately, shared outcomes should take precedence over opportunistic pursuits.