Community currency clearing: Difference between revisions

Latest revision as of 07:46, 7 August 2004

Community currency clearing is the grassroots equivalent of the w:Bank For International Settlements which clears transactions in national currency:

That Bank sets up reserve requirements so that no excessive amount of any national currency will be honoured as "hard currency" unless it meets some basic requirements to respect certain property rights, notably land ownership, and corporate priveleges. Some countries, like China, are outside the system and have "pegged" their currency to the US Dollar so they have the advantages of a hard currency without meeting the "requirements".

In reality, the Bank is a formality and currency transactions route around it, they are created by handshakes and by transactions in finanicial brokerages, insurance companies, etc.. But ordinary citizens using community currency like LETS or even such incentive schemes as "Air Miles" or "Green Stamps" are also doing monetary transactions: without any global clearing scheme that would let you earn in one and then spend in another.

The Transitioner is a service concerned with the various issues in how to retain local/community character of grassroots exchanges including community currency and other complementary currency (this is now the standard term as these typically do not replace but augment national money). These might be relevant to Consumerium Services in any of the following ways:

making a revert currency meaningful in ways beyond the Research Wiki
integrating edits, votes and bets across many large public wikis
paying or receiving price premiums in some softer currency than the one in which the item is priced at point of purchase, as an incentive to buy more green light products

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 '''Community currency clearing''' is the grassroots equivalent of the [[w:Bank For International Settlements]] which clears transactions in national currency:
-That Bank sets up [[reserve requirement]]s so that no excessive amount of any national currency will be honoured as "[[hard currency]]" unless it meets some basic requirements to respect certain [[property right]]s, notably [[land ownership]], and [[corporate priveleges]].  Some countries, like [[China]], are outside the system and have "pegged" their currency to the [[US Dollar]] so they have the advantages of a hard currency without meeting any B4IS rules.
+That Bank sets up [[reserve requirement]]s so that no excessive amount of any national currency will be honoured as "[[hard currency]]" unless it meets some basic requirements to respect certain [[property right]]s, notably [[land ownership]], and [[corporate priveleges]].  Some countries, like [[China]], are outside the system and have "pegged" their currency to the [[US Dollar]] so they have the advantages of a hard currency without meeting the "requirements".
 In reality, the Bank is a formality and currency transactions route around it, they are created by handshakes and by transactions in finanicial brokerages, insurance companies, etc..  But ordinary citizens using [[community currency]] like [[LETS]] or even such [[incentive scheme]]s as "[[Air Miles]]" or "[[Green Stamps]]" are also doing monetary transactions:  without any global [[clearing]] scheme that would let you earn in one and then spend in another.