Euro no longer needed to avoid paying in forints in Hungary? A new trend is rapidly taking hold!
In recent years, economic crises, persistently high inflation, and declining real wages have cast doubt on everyday livelihoods for many in Hungary. The forint’s exchange rate remains volatile and continues to weaken, while the introduction of the euro is still off the agenda. It is therefore unsurprising that a growing number of communities are seeking alternative solutions to ease financial pressures at a local level.
One such response comes in the form of local currencies, or complementary currencies, which are not legal tender but circulate within specific towns or regions. Their aim is both economic and communal: to keep money circulating locally, bolster local businesses, and symbolically express regional identity.
How do local currencies work?
According to an article by Pénzcentrum, one of the core principles of community currencies is that they are not intended for saving. They do not accrue interest and often lose value if not spent. This is a deliberate feature designed to ensure that money quickly re-enters the economic cycle, supporting local shops, producers, and service providers.
Customers often benefit from discounts when paying with local currency—potentially saving between 5 and 10 per cent. Meanwhile, businesses can be confident that their revenue remains within the local community rather than flowing to other cities or multinational corporations.
Which alternative currencies have been introduced in Hungary?
Among Hungarian examples, the Sopron Blue Franc is particularly notable. Introduced in 2010, it is accepted primarily by small shops, wineries, and restaurants. The Balaton Crown has existed since 2012 and was used in several towns around Lake Balaton, both in paper and electronic form—though its use declined during the pandemic.
Also called a crown, the Bocskai has been in circulation in Hajdúnánás since 2013, its design reflecting the area’s historical heritage and linking to local cultural events. Meanwhile, the Tokaj Ducat is a newer initiative tied to the renowned wine region, aiming to retain tourism-generated revenues within the area.
Local currencies are typically backed by civil organisations or local governments, which view them as tools for community building and economic self-defence. In 2011, the Union of Local Currencies was established to coordinate and support such initiatives.
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What does the future hold for local currencies? Is the forint at risk?
According to the Hungarian National Bank and other central banks, local currencies have rarely achieved their anticipated macroeconomic impact. Nevertheless, they have been operating for years in some municipalities, and their success is not always measurable through economic indicators. Their value lies in strengthening community cohesion, preserving identity, and offering creative solutions during times of crisis.
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These systems do not aim to replace the forint but rather to complement it—though they may also symbolically suggest that, for many, the official currency does not fully meet expectations. Should every region in Hungary eventually adopt its own currency, this could spark a broader re-evaluation of the forint’s role.
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