Innovative Regional Development of the Structurally Disadvantaged Industrial Region by the Means of the Local Currency

tool to increase trading activities and social interactions of
geographically restricted regions. This paper aims to investigate the
potential of innovative regional development of the structurally
disadvantaged industrial region focused on the steel and mining
industry by means of the local currency. Being the important
players of local economies and regional development, SMEs have
always been in the center of interest for practitioners of the local
and community currencies. Therefore, our research team analyzed
and explored major benefits and barriers that SMEs perceive to
adopt and use local currency. In parallel with the specified aims, the
researchers employed the structured questionnaire survey with open
and dichotomous questions focused on SMEs with no practical
experience with the acceptance and use od the local or community
currencies in Cieszyn Silesia region. The results of our research
show that SMEs are prone to be active members of local currency
communities, and they positively perceive the support that major
regional producers, service providers, and practitioners can provide
for them through this instrument. Moreover, some SMEs also
perceive local currencies as a marketing and promotion tool that
increases product-service quality and mutual transactions of firms.
According to the respondents, high participation fees and exchange
rates, lack of usage by customers and coverage by national
currencies, counterfeiting, and fraud, liquidity risk, taxability,
accountability, legislative and technical issues, credibility and
trustworthiness of practitioners have been main impediments in the
adoption and usage of these currencies by SMEs. This research
provides innovative solutions and suggestions for policymakers in
case of the regional development of the structurally disadvantaged
industrial regions to overcome the barriers of local currencies. Since
local currencies can be created in digital formats, the increasing
importance of local digital currencies in the Covid-19 pandemic has
also been highlighted.