Merchants promote culture, use coin pieces in lieu of U.S. dollars
By Rio Christoffersen, December 2009
Fine Arts Editor

There is a local currency grassroots movement going on here in Phoenix by the name of Phoenix Bucks, or in simpler terms, PhxBux.

Photo by Josselyn Berry

A PhxBux coin designed by local artists and sculptors rests on an American dollar bill.

ASU student Joey Grether and John Sagasta, owner of the downtown shop Conspire Coffee, are the brains behind the PhxBux operation. PhxBux is a local currency system in the form of a $1 denomination, which can be given or used as change amongst a group of downtown stores.

It comes in the form of an artfully designed coin piece sculpted by Phoenix artists and jewelers Chadwick and Rueling. The PhxBux was released during the summer in July, and since then, it has been slowly making progress in a typical grassroots style. Currently, there are 3,500 pieces in circulation.

“We saw other cities that were able to do it (local money), so we wanted to try it,” said Grether. “Use it to highlight the arts and local culture here in Phoenix.”

The inspiration behind the PhxBux follows the example of other local currencies in a variety of cities across the U.S. In the Berkshires region in Massachusetts, the local currency BerkShares is used throughout the entire area with 360 businesses signed on to accept the currency. In Michigan, there is also a local currency by the name of Detroit Cheers that was released earlier this year.

In Ithaca, New York, there is local paper money that began being used back in 1991. Since then, they have gained a substantial amount of control in their county by issuing thousands of dollars in Ithaca Hours, the currency.

One Hour is equivalent to $10. In Ithaca, overtime the Hours have developed: Hours come in five denominations. Hours can buy anything including plumbing, carpentry, nursing, childcare and car or bike repair. It can even help with a mortgage payment.

Here in Phoenix, there are 27 businesses that accept PhxBux. Downtown, Central Phoenix and Tempe establishments like Wet Paint, Carly's Bistro, Stinkweeds, Cowtown Skateboards and the Red Hot Robot are just a few of the many.

Grether said near future goals for PhxBux do include releasing another denomination or two, most likely in a $2 or $5 format. As of late, according to Grether, the $5 format is most likely to be released first. He also has plans to sponsor a contest to create money art to help build awareness about local currency and the PhxBux.

While Grether does state that the PhxBux received much more press than they ever could have imagined, he does wish to see more people use it.

“The main thing is to create awareness," said Grether. "With the public hearing about it and getting excited, I would hope people would use it more. If people don’t want to do it, it’s not going to work. It’s a currency; you have to be comfortable with it; use it.”

Grether emphasizes that by keeping the money local, it creates a community interaction and unites small businesses, and he's not the only one that believes this.

Lindsay Cates, a manager at Stinkweeds Record Exchange in Tempe, sees PhxBux catching on. Stinkweeds does sell PhxBux and also actively participates in giving back some change in the PhxBux when a customer makes a purchase. She sees the PhxBux catching on quicker at stores with cheaper items, like water or beer.

“We support anything downtown,” said Cates. “We have to help keep the money local as well as spend the money locally.”

Jessica Jordan, owner of Wet Paint, the only family owned art supply store here in Phoenix, supports the PhxBux fully as the owner of a small business. Jordan sees it as an opportunity to unite small businesses and to interact.

She believes it would help if business owners would give back actual change in the PhxBux format, ask the customer if that’s alright with them, and time permitting, explain what the PhxBux is to a customer and why it’s important.

“This is one of those things that needs to be in your face. But like a typical grassroots style, it takes a while to get moved,” said Jordan.

For more information and a complete listing of stores that accept PhxBux, visit www.phxbux.com.