After the meetings with my supervisor and the confirmation of my topic, I have spent the last two weeks mainly on literature reading and reflective work

Digital Community Currencies (DCC) have emerged as a promising alternative to traditional payment systems, particularly in the context of community development and financial inclusion. However, studies on the benefits and challenges of DCC remain limited, despite the growing interest in this area. This paper aims to address this gap by exploring the conflicts and benefits of DCC as part of the digital payment platform scenario.

The paper begins by defining virtual currencies and community currencies and their goals. It highlights the potential benefits of DCC, including cost savings and better management of the money circulating within a community. However, the paper also acknowledges the challenges associated with DCC implementation, such as governance and technology-related issues that affect social aspects of financial transactions in a community.

One of the key findings of this study is the need for effective governance mechanisms to ensure successful implementation of DCC. The study highlights the failure of a Brazilian DCC implementation via mobile phone, which was attributed to poor project governance. This underscores the importance of collaboration between the actors bringing the new technology infrastructure and the community issuing the currency.

Moreover, the study notes the importance of considering the social aspects of financial transactions when implementing DCC. While digital transactions are expected to be rapid and anonymous, they can weaken social bonds and community connections. This highlights the need for a balance between efficiency and social interaction in DCC implementation.

In conclusion, this paper provides a comprehensive overview of the benefits and challenges associated with DCC implementation. It emphasizes the need for effective governance mechanisms and a balance between efficiency and social interaction to ensure successful implementation of DCC. This paper will be useful for policymakers, researchers, and practitioners interested in the use of DCC to promote financial inclusion and community development.