Archive for the ‘Types of Money’ Category

Types of Money – A Table

Sunday, April 12th, 2009

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


Legal Tender

Corporate Barter

Community Barter

Corporate Monies


Commercial barter exchanges

Local enterprise trade exchanges / community currencies / time banks

Airlines, also

telephone providers,

filling stations,


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.






Very Restricted

Payment media


Formally and only members

Only members

Only members


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


Store of Value

Given price

stability, unlimited

Limited since

mostly subject to


depreciation and

extra premium

when redeemed

Yes, but limited

range of goods and


Limited. Issuer can


programme. Expiry

dates in most cases.

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