Digital municipal currencies as a new municipalist instrument for trans-local transformation: The case of the state of Rio de Janeiro, Brazil

Abstract

Emerging from the citizen movements of the early 2010s, New Municipalism merges the administrative capacity of municipal government with the organizational capacities of activists and social movements to build more equal, just and ecological local economies. In these contexts, Digital Municipal Currencies (DMCs) emerge as potent instruments of counter-hegemonic struggle, enabling cities to implement welfare policies and local economic revitalization. However, a trans-local paradox inheres to New Municipalism: how to remain local yet advance broader systemic transformation? This study compares three DMCs in Rio de Janeiro, addressing the paradox by introducing the notion of ‘standardized malleability’. It describes how cities adopt a uniform monetary infrastructure while adapting policies to local contexts, thus balancing local adaptation with trans-local scalability. The study reveals how the temporal dynamics of multi-scalar transformation shape the adoption patterns of DMCs across municipalities – from radical pioneer experiences to more pragmatic implementations – demonstrating that system change occurs through ‘repeated instances’ regardless of ideological orientation. Findings reveal DMCs as promising instruments for urban governance, enabling progressive policies amid financial constraints. However, their long-term viability depends on stable funding sources, prompting discussions on evolving DMC designs to enhance sustainability and wider adoption. The article ends with a reinterpretation of what constitutes ‘the political’ in multi-scalar transformation processes, from ‘radicalism’ to a shift of the boundaries of what is considered possible and the creation of new democratic spaces for co-governance.

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