Sharpsburg Neighborhood Organization and CMU spinoff create digital borough currency

A Sharpsburg organization has partnered with Carnegie Mellon University spinoff company to create a digital borough currency.

Sharpsburg Bucks was launched a little more than a month ago to encourage people to shop and keep their money local.

The alternative currency is a pilot project of the Sharpsburg Neighborhood Organization and ZUZlab, a spinoff company from CMU.

Brittany Reno, mayor and SNO executive director, said the “bucks” idea has been in the works since June 2022.

However, CMU Associate Professor Seth Goldstein has worked on the underlying platform for alternative currency since 2020.

When Goldstein realized that small businesses would suffer from the long quarantine ahead, he enlisted a team of undergraduate students who had lost their internships due to the pandemic, and started looking for ways to help his community.

Goldstein says that he researched tools to help people lead “meaningful lives as technological progress makes it harder for humans to do jobs.”

Sharpsburg Bucks works like this:

Go online to getzuz.com and create a digital wallet.

People can purchase Sharpsburg Bucks through SNO’s website, sharpsburgneighborhood.org/sharpsburgbucks, or at the SNO office at 511 Main St. from 3-5 p.m. Fridays and 2-4 p.m. Saturdays.

They would then go to businesses in the borough that accept the digital currency and pay for things using their Zuz wallet similar to Apple Pay or other digital wallet services.

Northwest Bank has provided an incentive to buy in to the program. The incentive is this: People who place an order of Sharpsburg Bucks at $20 or more get an additional 10% in Sharpsburg Bucks currency for every dollar spent up to $100.

So, those who buy $20 worth of Sharpsburg Bucks get an additional $2.

People must by at least $20 in Sharpsburg Bucks to get the promotion.

Reno and Goldstein said the bucks program came about through a desire to keep money within their communities.

“We have a two-fold goal,” Reno explained. “To grow the local economy and to build stronger relationships. The Sharpsburg Bucks program helps keep money circulating in the area. This creates more opportunities for small business owners and encourages people to ‘go local’ with their money. When our downtown businesses do well, everyone benefits.”

She commended Goldstein for providing a new opportunity to help the borough.

“As the pandemic swept over our region, Professor Goldstein saw many businesses close as he walked around Pittsburgh neighborhoods near Carnegie Mellon, and he wanted to use his research and technology for good,” she said.

Goldstein said that when looking for neighborhoods to introduce his digital currency, he and his team analyzed which ones would benefit most.

He concluded that mill towns in the area, which suffered greatly when the mills shut down, were the perfect fit.

Goldstein explained that when economies aren’t doing great, digital currencies can help.

“The platform was designed to increase local spending at independently owned stores so that local businesses, communities, and individuals can benefit from stronger local spending.”

Digital currency also is more efficient than printing money.

“After learning about it, I shared the concept with many of Sharpsburg’s small business owners and our nonprofit partners, who helped co-design a Sharpsburg version of community currency, an idea which has worked well in other communities to increase foot traffic and local community pride around small businesses,” he said.

ZUZLab operates the community currency system, charging businesses 1.5% of each transaction — half the rate charged by credit card processors — which is then split between ZUZLab and the neighborhood association.

“We’re not trying to make a fortune with this,” said Lisanne Biolos, co-founder of ZUZLab and a former director of executive talent development for KPMG, the global professional services firm. “The hope is that it will bring value to these communities.”

Where to spend

About a dozen businesses have signed on to participate including 4Four6 Distillery.

Managing partner Jerry Sunday said nobody has used it yet at the bar, but his team is ready when they do.

“It’s a unique thing,” Sunday said. “I had not heard about it until they came around and approached us. You’ve heard about things where you can trade services, but I like the simple fact that it helps us promote each other and support each other. I think that’s an important thing these days. There’s a lot going on here in Sharpsburg.”

He said there are only one or two more steps to processing Sharpsburg Bucks compared to a credit card, and believes more people will start using the bucks once the word gets out.

“It’s not cumbersome to use,” Sunday said. “I think it’s a great idea for the businesses. I would be a proponent of it becoming more and more popular. We support it.”

Second Harvest Community Thrift Store is another participating business. Manager Phyllis Wade was trained in processing the bucks.

“It’s not hard. It’s extremely easy to do,” Wade said.

Manager Kelly Gere said she likes the 10% incentive to buy the bucks.

“I can see how that’s meant to stimulate the Sharpsburg economy,” Gere said. “I hope that it will encourage people to shop in Sharpsburg. I think there is a really wonderful community of small businesses here that really deserve that kind of support. Anything to get people to come out would be great.”

Gere and Wade said they have not had anyone use the bucks in the store, yet.

Other participating businesses include Atithi Studios, Eclectic Remedies, Dancing Gnome Brewer, Frankie’s Sausage, Gino Bro’s Pizza, Mindy’s Take & Bake, The Young in You Beauty Salon, Venture Outdoors Kayak Pittsburgh and ZYNKA Gallery.

Businesses looking to sign up can email Brittany Reno at brittany@sharpsburgneighborhood.org.