Alternative Currencies in Brazil
In Cidade de Deus, a slum in Rio de Janeiro and the basis of the 2002 film “City of God,” residents can shop using a local currency called the “CDD,” a nickname for the Brazilian favela. It is one of dozens of alternative currencies that are catching on in Brazil.
So what are the benefits? In Brazil, community currency encourages residents to buy goods from local businesses instead of in other wealthier towns where many go for work. The CDD, along with the “capivari” in Silva Jardim and the “bem” in Vitoria are pegged to be stronger than the Brazilian real so shoppers get a discount. Residents can more easily open accounts at the community banks that issue the currencies, and in the case of Vitoria can get loans from Banco Bem based on their neighbors’ approval. It’s not a bad deal for tourists either; in CDD, they can change Brazilian reals into local money.