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Alternative Digital Currencies Based on Barter

Written by Gary North on July 15, 2012

The free market responds to demand.

When a government breaks down, free markets respond. This is happening in Greece.

In a town 200 miles north of Athens, a network of bartering townspeople has sprung up. No government agency is involved.

No taxes will be paid.

An unemployed mother and her daughter are selling jams, vegetables, and liqueurs.

They use a digital currency called TEM.

“In the network, people can trade their goods and services,” says Christos Papaioannou, one of the network’s founders. “If I do a service for you, then you owe me a favour. And I can use that favour to get some service from someone else. So, we don’t have to exchange directly, I can get it from some third person.”

To be clear, there is no actual currency or scrip exchanged. Credits are tracked via an open-source community banking software system called Cyclos. Katarina, for example, banks her credits from selling jam to buy staple foods such as eggs and fresh vegetables that are offered through the network.

This is not the only such system in Greece. They are everywhere.

“I think that people are becoming increasingly aware, over the past few years, that financial systems aren’t sustainable. And that boom and bust is always going to be with us, despite politicians continually telling us they are going to work to remove [them],” says Ken Banks, who recently launched a project called Means of Exchange. The idea behind the project, says Banks, is to create a “toolbox” of web-based and mobile apps that will make it easier for people to engage in things like bartering, swapping and alternative currencies.

Mr. Banks has competitors.

This is going to spread. It will appear whenever governments and banks break down. When this happens, production will scape the tax collector’s nets. The tax collector cannot track everything. He cannot brig charges against everyone. The more people who get away with unreported income, the more difficult it will be for governments to avoid contraction.

The future will have smaller, weaker governments.

Continue Reading on www.bbc.com

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6 thoughts on “Alternative Digital Currencies Based on Barter

  1. victorbarney says:

    ":CASHLESS SOCIETY" ANYONE? LIKE IT OR NOT, I'S ABOUT TO ARRIVE! How do I know? Well, first, we now have the ONLY LEADER EVER to appear in America, which as England, actually is Israel by the seed of Joseph, not Judah(Gen. 48:16), as Judah ONLY was promised Messiah! We lost knowledge of our being Israel because be broke our side of the First-Born Blood Covenant with our CREATOR by "BREAKING" the SABBATHS(WEEKLY & ANNUAL) COVENANT! Yes, Obama is NOT only the "forbidden foreigner"(Only GENTILE EVER TO LEAD U.S.) of DEUTERONOMY 17:15, but also the correct "ANTI-CHRIST"(MARXIST) OVER U.S. THIS TIME to forefill the 6,000 year old First-Born Blood Covenant of DEATH made 6,000 years ago between our FIRST MOTHER(HAWAH), her FIRST-BORN SON, CAIN, who murdered his brother Able, & Lucifer, STILL the ARCH-ANGEL over this WORLD, unless you personally are taken out of it! Watch now for the prophetized two-witnesses of Revelation, chapter 11 to bear witness against u.s. starting on this coming September 16, 2012, which is the CORRECT DATE of the Annual Feast of Trumpets(WAR)! WATCH!

  2. There is one problem with smaller weaker governments, and that is defense from other governments who are not so benevolent, such as dictators and religious states like those in the Mediterainean area. But there is a need to survive and bartering seems like the way to do that to a point. So how do good people denfend themselves from terrony? I don't know except by keeping firearms at the ready. But against a well trained army? Not good.

  3. Love it! Took a look at the software, interesting stuff. My first thought about trying to implement it in the US and create a competing currency is: "When will my door be broken down in the middle of the night by hooded thugs with machine guns yelling ATF to kill my wife and children?" I hope your right that the future will have smaller and weaker civil governments, especially the central government in the United States. It would be wonderful to be free, just economic freedom would be an improvement.

  4. Coming soon to a broken monetary system near you….

    What the hell…if it works, harms none and gets the job done, do it!

  5. […] more on teapartyeconomist.com Posted in Economic Conditions, Foreign […]

  6. What are the chances that such local currency/bartering is only good for staples? In other words, you can't run a modern economy that way. If so, then the future will see societies go backwards to a local farming town economies. The "all organic" groups might like but it would stink for everyone else.