"So far, only Utah has approved a law recognizing nontraditional currency. Four other states have bills pending this year. Marshall said he is unsure of his proposal’s prospects in the Virginia Senate. His proposal would create a 10-member commission to study “the need, means, and schedule for establishing a metallic-based monetary unit to serve as a contingency currency for the Commonwealth.”
Efforts to establish alternative currencies amount to an economist’s version of a Fed boycott. But how the system would actually work remains murky. States do not have the constitutional authority to print money, but Marshall believes a potential loophole exists that could allow states to coin silver and gold. Utah’s law recognizes coins minted by the federal government from precious metals, intended for use as investments or collectibles, to be used as legal tender anywhere in the state. Although the law hasn’t changed what’s in most residents’ wallets, the measure became the poster child for those calling for a return to the days when money derived its value from gold. Today, money is backed by the authority of the U.S. government.
Economist Bernard Lietaer, author of “Rethinking Money,” pointed out that a host of informal currencies have proved widely popular in the United States. For example, he said, there are 50 trillion airline frequent-flier miles in circulation, far surpassing the number of dollar bills. The benefit of a single currency “has been drilled into our heads for about 300 years,” Lietaer said. “I’m still looking for a book of economics that drops this assumption.”
"Bernard Lietaer argues that the monoculture of money is what creates economic instability, leading to liquidity crises. He calls for a greater diversity of alternative currencies, citing innovative and enormously successful initiatives like the Lithuanian Doraland Economy, the Torekes in Belgium and Switzerland's famous alternative currency, the WIR."