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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
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Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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can I legally set up a local currency bank

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can I legally set up a local currency bank
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

The US Constitution prohibits individual states from printing and issuing paper money as legal tender. Individual communities, however, are able to create their own currencies -- including paper notes and any individual can legally do so as long as the money is easily distinguishable from U.S. dollars and values are tied to the U.S. dollar so that income remains taxable.

As long as your currency does not look like US money and you are basing the value on the US dollar and taxes are paid as required in US Dollars, it is not illegal.

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