In Aloha We Trust

 (Black & White Copies of Actual Currency)
What is
Coconut Currency?

Its a new way to stimulate Kauai's economy, heal the aina, and promote sustainable self-sufficiency on Kauai

How Does Coconut Currency Work?

Coconut Currency provides a way we can trade goods or services using a locally created currency. Transactions can happen by account or trading of paper currency. Account transactions are made by exchanging paper script money or account receipts for goods and services. The script money is used like regular money. Account receipts are used like checks that are delivered directly to the Kauai Alternative Resource Management Agency (K.A.R.M.A.) to be placed on account or cashed for script money. Every account holder gets a periodic statement-just like a bank. Unlike a bank, CCs are available to you at no interest. This system is not designed to make a profit but to stimulate local trading. It frees up federal currency for things you can't buy locally with Coconut Currency.

Why Is Coconut Currency A Good Thing?

Coconut Currency supports our island's economy. Since it's meant to be traded only on Kauai, trading for goods and services using CCs benefits Kauai's community by keeping business local. Ordinary dollars tend to disappear from local hands, while CCs remain here, creating more abundance for local people. In this way we gain more control over jobs and prices, more control over food quality, environmental effects and labor conditions. We create new businesses and jobs for everyone. We feel prouder for getting to use skills and hobbies that often go unnoticed or unpaid. We can take care of tasks that are often ignored due to lack of money. We can export more goods and retain more wealth locally. We increase friendly trade and can meet new friends. We're making a community while making a living.

How Do I Participate?

Trade for goods and services using coconut currency, either script money or receipts. You can get coconut currency by joining K.A.R.M.A. or by applying for a loan or grant from K.A.R.M.A. Theres an initial charge of $20.00 to join K.AR.M.A. When you join, you receive an account number and your account is credited with an initial 40 CCs (The equivalent of 40 coconuts or approximately 4 hours of labor) which you can keep on account or receive in paper currency. You will be listed for free in the Kauai Barter Network Directory. The Directory contains a list of people interested in barter or trading in Coconut Currency along with a list of the goods and services they have to offer and the things they are looking for. Theres a small charge for additional advertising in the Directory and our periodic newsletter.

You get more hours by trading more yourself. Remember, this is a grassroots movement that grows by the efforts of everyone involved.

Talk to people!

Spread the Word! Make it Grow! There are grants of Coconut Currency available for businesses and individuals with particular characteristics, some of which include those who provide the community with organic food, locally produced sustainable goods, alternative energy, positive environmental projects such as restoration of land and water, recycling, environmental education, renewable resources, and any service that helps us become a more self-sufficient, cooperative and abundant community. Please contact K.A.R.M.A. for more information on community service grants.

How Do I Trade Coconut Currency?

Trading happens either by the exchange of paper currency or by notifying the K.A.R.M.A. Center of the exchange through a receipt, so your account can be balanced. Notice of the exchange is handled by the person who gives goods or services. K.A.R.M.A. keeps records of account transactions and everyone is encouraged to keep records of their own account. Written receipts should be signed by both parties.

How Can Businesses Use Coconut Currency?

A shop can retail any percentage of its goods in Coconut Currency, from 1 to 100%. Accepting local currency establishes loyal customers and is known to increase business. The more local businesses join in, the more the network grows, and the stronger the economy becomes for everyone.

Is It Legal?

Yes. Our Coconut Currency is a legal form of script money according to the laws of the United States of America. There are numerous rules that must be followed for script money to be legal, for example: it has to be a different size than federal notes; it must not say "dollar" anywhere on the currency; and every note must be worth at least one dollar. We at K.A.R.M.A. have done our best to abide by the current laws. As long as it is not traded across state lines, and not exchanged directly for U.S. currency, then our currency is quite legal and is "real" money.

Does IRS Think Coconut Currency Is "Real" Money?

Yes and no. The IRS considers it real money that is fully taxable, and says you must report your Coconut Currency earnings. On the other hand, they will not accept payment in Coconut Currency.


What Is K.A.R.M.A.?

K.A.R.M.A. is the Kauai Alternative Resource Management Agency. Its a volunteer grassroots group of residents dedicated to the establishment of a local currency system on Kauai. Anyone whos interested can sit in on a K.A.R.M.A. council and help out. Since were a fledgling movement, any extra hands are welcome and donations are encouraged. Were working in cooperation with the Eloha Foundation, a non-profit charity, so YOUR donations are tax-deductable.

Please help with a donation of time or money. The beautiful paper currency, designed by Free, is not free to print, and we need more. We hope to publish our first newsletter and phone book soon too. Other promotional material and account mailings cost money and time as well, so you can see how your donation will help this project help Kauai on its way to becoming self-sufficient. In addition to donations of federal currency you can donate Coconut Currency to help pay our hard-working staff and provide the resources needed to continue the Coconut Currency project. MAHALO!


(Kauai Alternative Resource Management Agency)
P.O. Box 677
Kilauea, HI 96754
828-0834 (Ask for Free)
  Rev. Oct. 9, 1999