BerkShares is a local currency system launched in 2006 in the Berkshire region of Massachusetts, designed and administered by BerkShares Local Inc., a 501(c)(3) non-profit organization developed in partnership with the Schumacher Center for a New Economics. The system enables residents to exchange U.S. dollars for BerkShares at a 1:1 rate through participating banks, then spend them at hundreds of local businesses throughout the Berkshire region. The core purpose is to strengthen the local economy by maximizing the circulation of trade locally, recognizing that independent local businesses are far more likely than large chains to reinvest money back into the community.
The mechanics of BerkShares work through a straightforward exchange system: participants purchase BerkShares from partner banks (Lee Bank and Pittsfield Cooperative Bank), which are backed 100% by U.S. dollars held in secure deposit accounts. When businesses receive BerkShares, they must spend them locally, creating a multiplier effect that keeps wealth circulating within the region. Additionally, participating businesses avoid credit card fees when accepting BerkShares, providing an incentive for adoption. Since its launch in 2006, BerkShares has successfully kept over $10 million in local circulation within the designated economic area.
In 2022, BerkShares expanded beyond its original paper currency format to include a digital version using blockchain technology, allowing customers to make purchases through a mobile app. This digital expansion maintains the core principle of the local currency system while adapting to modern payment preferences, positioning BerkShares as one of the first U.S.-based local currencies to successfully bridge traditional and digital payment methods.