Types of Money – A Table

The following comparison of various types of money in circulation shows the private unofficial issuance of currency is not an entirely new phenomenon across the globe.

This, intra-system claims of local exchange trade associations, such as non-commercial local exchange trade systems, LETS, and commercial barter clubs may, in principle, be seen as a private currency in the same way as some claims (transferable to third parties) on enterprises. However, in terms of their economic significance, the regional currencies are not only far behind the official currency, they also occupy no more than a marginal position with regard to the other unofficial private monies.

Official Currency

Private Unofficial Currencies

FORMS OF MONEY

Legal Tender

Corporate Barter

Community Barter

Corporate Monies

Issuer

Commercial barter exchanges

Local enterprise trade exchanges / community currencies / time banks

Airlines, also

telephone providers,

filling stations,

payback

Type of Money

Banknotes & Coins

Deposit Money

Deposit Money

Deposit Money

Range of Acceptance

Broad. Legal tender with mandatory acceptance.

Formally, only members. Restricted to membership base.

Only members.

Regionally restricted.

Only members.

Supra-regional.

ACCEPTANCE

Universal

Restricted

Restricted

Very Restricted

Payment media

Unrestricted

Formally and only members

Only members

Only members

Circulation

In principle, infinite

In principle, infinite. In practice – limited due to market size.

Only very limited: after media have

been disbursed to

third parties, return

flow to issuer

Unit of Account

Official unit of account

1:1 with Legal Tender. In practice – inflation exists within most due to overpricing in market.

Self-defined. Usually in a time-basis.

Self-defined (e.g. Airmiles, payback

points)

Store of Value

Given price

stability, unlimited

Limited since

mostly subject to

ongoing

depreciation and

extra premium

when redeemed

Yes, but limited

range of goods and

services

Limited. Issuer can

discontinue

programme. Expiry

dates in most cases.

Do you want to know more about the Ormita Commerce Network or become a member, joint venture partner or barter exchange franchise owner?  Visit our website at www.ormita.com or www.ormitacorporate.com.

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