The company behind the Bristol Pound currency say it needs funding to continue its digital scheme beyond the end of March 2020.
Launched in 2012, the Bristol Pound is the largest local currency scheme in the UK and is accepted by hundreds of businesses across the city.
However, those behind the currency say new technologies, such as contactless payments, have forced them to develop a new "payment product" fit for the new decade.
While development work on the next phase of the Bristol Pound project is under way, the existing digital scheme will close down in March if funding is not found.
The scheme allows users to set up an online bank account, make regular payments, pay for goods using the Bristol Pound app and covert sterling into £B.
Bristol Pound CIC, the company behind the currency, says it is reliant on grant funding to maintain operations but has said this has become "increasingly difficult" to raise.
It has stressed that all money held in digital and paper £B is "perfectly safe" and have urged users not to panic.
The company has also said the paper form of the Bristol Pound may continue beyond March and that it will have a meeting with traders at the end of the month to gauge interest.
Diana Finch, managing director, said: “In an ideal world, we would continue the current Bristol Pound digital currency until we have the new platform up and running, to maintain the momentum of our work.
"I remain optimistic that funding will be found to enable that, but in the meanwhile, I want to be open about our situation.”
She added: “There is no reason for panic.
"All money held in £B is safe, and the scheme will continue to operate as normal until at least the end of March.
"We will manage any winding down of the scheme carefully and continue to communicate openly with all our members.”
A spokesperson for Bristol Pound CIC said: "The Bristol Pound CIC is reliant on grant funding to maintain and invest in its current operations.
"This is increasingly difficult to raise, and as a result the organisation is looking at having to take the difficult decision to start to wind down the existing digital scheme in March if no further funding is found.
"Everything will continue to operate until at least the end of March.
"Bristol Pound will keep individual and business members informed at every stage. All money held in digital and paper £B is perfectly safe.
"The accounts, which are held by the Bristol Credit Union (BCU), will continue to operate as normal until such point as the scheme is closed, when they will simply revert to sterling.
"The paper £B vouchers are fully backed by sterling, and we will be liaising with traders and the BCU to ensure that currency can be spent or exchanged to sterling up to its expiry date."
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