Ithaca, New York, launched Ithaca Hours in 1991, creating one of the best-known local currencies in the United States.
The currency was developed by Paul Glover as a way to encourage local exchange and recognize the value of work that might not be fully represented by conventional money. Notes were denominated in “hours,” linking the system to an approximate unit of labor rather than directly to a national currency.
Businesses and individuals who accepted Ithaca Hours could agree on prices and services within the participating network. The project helped popularize the idea that a community currency could support local economic relationships and keep spending closer to home.
Ithaca Hours is distinct from BerkShares, which began in Massachusetts in 2006 and was exchanged through participating banks. Local currencies vary widely in design, scale, and long-term durability.