Institutionalizing Social Solidarity Economy

This study analyzed the institutionalization of the social solidarity economy (SSE) in Maricá, Brazil, focusing on the Mumbuca Bank and its digital currency operations. Established in 2013, Mumbuca Bank introduced Brazil’s first digital-based social currency, contributing to local economic revitalization and enhanced financial inclusion. This study examined the institutionalization process of Mumbuca Bank and the role of digital currency based on Milton Santos’s urban economic circuit theory. The research centered on three questions: “What are the key characteristics observed in Mumbuca Bank’s institutionalization process?;” “What impacts has the digital currency-based SSE had on the local economy and society?;” and “What are the main factors affecting Mumbuca Bank’s sustainability?” The study aimed to analyze success factors and limitations of SSE institutionalization, investigate the effects of digital currency on local economic revitalization and financial inclusion, and derive policy implications applicable to other community banks. The findings confirmed that Mumbuca Bank served as a bridge connecting upper and lower circuits, contributing to balanced local economic development. Notably, following the introduction of digital currency, the number of affiliated stores increased from 1,491 to 12,390 between 2018 and 2021, while local consumption surged from 12.36 million to 254 million reais, showing remarkable results. However, challenges remain in ensuring sustainability amid political changes and supporting digitally marginalized groups.