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.
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Official Currency |
Private Unofficial Currencies |
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FORMS OF MONEY |
Legal Tender |
Corporate Barter |
Community Barter |
Corporate Monies |
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Issuer |
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Commercial barter exchanges |
Local enterprise trade exchanges / community currencies / time banks |
Airlines, also telephone providers, filling stations, payback |
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Type of Money |
Banknotes & Coins |
Deposit Money |
Deposit Money |
Deposit Money |
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Range of Acceptance |
Broad. Legal tender with mandatory acceptance. |
Formally, only members. Restricted to membership base. |
Only members. Regionally restricted. |
Only members. Supra-regional. |
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ACCEPTANCE |
Universal |
Restricted |
Restricted |
Very Restricted |
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Payment media |
Unrestricted |
Formally and only members |
Only members |
Only members |
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Circulation |
In principle, infinite |
In principle, infinite. In practice – limited due to market size. |
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Only very limited: after media have been disbursed to third parties, return flow to issuer |
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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) |
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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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