Exchange Types

CES caters for two different types of exchanges. Select the type that will be most appropriate for the group you are proposing to set up

  Community Exchanges Time Banks
Other names Community exchanges are sometimes called mutual credit exchanges, LETS, clearing circles Time banks are sometimes called "service exchanges"
Unit of value/account
(i.e. how prices are set)
Usually based on the national currency at a more or less 1:1 ratio. Sometimes other references are used to determine prices, e.g. gold, energy, loaf of bread, egg, "basket of goods" Usually based on one hour but may be any other time unit such as 1 minute, 10 minutes, 15 minutes etc. Alternatively one hour (or other time unit) can be given a number of units, such as 10 units/hour
Types of offerings Everything, goods and services Mainly services
Global trading between different exchange types Yes Yes, time banks can trade with other time banks as well as with community exchanges
Zero-sum accounting Yes Yes
Hide trading records No Yes
'Market' influence Prices can vary for the same goods and services. 'Demand' and 'supply' can have an influence on prices Timebanks tend to encourage a fixed rate for all services - "one hour of my service is equal to one hour of your service"
Taxable Some governments treat mutual credit transactions as a money substitute and therefore claim that they are taxable Usually not taxable
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