Social Currency: Analysis of The Economic Potential of Community Development Banks as Instruments of Public Policies in Brazil

Abstract

Objective: Analyze Community Development Banks and social currencies as instruments of public policies. Theoretical Framework: The study includes theoretical approaches on Community Development Banks and public policies focused on solidarity economy and social currency. Method: The study is a basic, qualitative research grounded in a descriptive approach method, supported by a literature review. Results and conclusion: It was observed that Community Development Banks adopt solidarity financial practices and financial inclusion by facilitating access to credit for individuals in socially vulnerable situations. Social currencies emerge as instruments aiming to energize the local economy through Community Development Banks, promoting the inclusion of marginalized populations. However, there is still much to be explored regarding complementary social currencies, and many municipalities are replicating and implementing this model in their territories to leverage local development. Simultaneously, resources are made available to enhance consumption and income in areas with low levels of credit conditions and financial literacy. Implications of the research: The study emphasizes the need to address Community Development Banks and, particularly, the establishment of public policies for solidarity economy and the creation of social currencies, considering the diversity of each locality. Originality/value: This study offers an original and valuable approach in analyzing Community Development Banks and social currencies as instruments of public policy. It reveals significant insights into the effectiveness of these banks in promoting solidarity financial practices and financial inclusion, especially for those in socially vulnerable situations.