ELI5: Explain Like I'm 5

Complementary currencies

Hi there little one! Have you ever heard of money before? Well, money is something that people use to buy things they want or need, like toys or food. But did you know that there are different kinds of money?

One kind of money is called a complementary currency. This is like regular money, but it's not the same as the money that the government gives us. Complementary currencies are usually created by people in a local community who want to trade things with each other without using regular money.

Let's say there is a community of people who grow vegetables in their gardens. They might decide to create a complementary currency, like tokens, that can be used to trade vegetables with each other. Each token would be worth a certain amount of vegetables. This way, people can trade their vegetables for other things they need, even if they don't have regular money to use.

Sometimes, complementary currencies are also used in places where regular money is hard to get, like in poor countries or areas that have been affected by natural disasters. People there might use complementary currencies to buy and sell things they need, like clothes or medicine.

So, complementary currencies are a way for people to trade things they need without using regular money. They can be used in local communities or in places where regular money is hard to get. It's like having a different kind of money that works better for certain situations.