To encourage people to shop locally, a new form of local currency not backed by a national government will be circulated beginning Nov. 1.

The currency, called UC Smiles, is a pilot program that will last six months. The University’s Office of Public Engagement gave a grant to Seonmi Kim, graduate student, for this program. One dollar is equivalent to one UC Smile, but only certain local stores, such as Strawberry Fields, That’s Rentertainment, Escobar’s and a small number of establishments on campus, accept the currency.

The UC Smile would be great for businesses because it could generate repeat customers who would be bound to return.

But the program likely will not work. For the program to be more widely used, more stores need to accept the UC Smile. With good reason, people will not want to hand over a universal currency for one that can only be used at a few stores.

Additionally, there is not much of an incentive for customers to use the UC Smile. Some stores offer discounts or a free item for any purchase that uses UC Smiles, but the benefits are not big enough to motivate people to go out of their way and exchange U.S. dollars for UC Smiles. The free benefits are not intended to be long-lasting, either. According to the website for the new currency, “At least initially, we ask that you provide some special discounts or services to customers using Smiles.” Many people shop locally and see the importance of keeping business in this area, but the inconvenience of toting around yet another item in a purse or pocket isn’t altogether an inviting idea.

Another problem with the program is the University giving it a grant. The grant will go toward printing costs and reimbursing businesses who accept the UC Smile. In a previous Daily Illini story about UC Smiles, Jake Dermer, junior in AHS, questioned the University’s contribution to the UC Smiles program, asking why the University was giving out real money to print fake money. Mr. Dermer, you have hit the issue right on the head.

Local money is not always problematic, though. In 1933, Urbana began printing Urbana Money to help strengthen the local economy during the Great Depression. At the time, local currency may have been necessary, but the current economic conditions do not merit using UC Smiles over the U.S. dollar. Despite the recent economic recession, economic conditions are not dire enough to motivate Champaign-Urbana residents to use a new form of currency.

The goal of UC Smiles is a noble one, but unless more stores accept the currency and offer more benefits to UC Smile users, the program will likely fail.