HOURS type:First modeled in Ithaca NY in 1991, HOURS currency is based on issuing paper currency to a core group of members who agree to accept it. It is usually roughly pegged to the national money (1 HOUR = $10), but cannot usually be redeemed for it. The largest and most successful system is in Ithaca NY.
LETS type:First invented in British Columbia by Michael Linton, LETS stands for Local Exchange Trading System. LETS are mutual credit systems usually denominated in the national money. Every member of the LETS has the power to issue currency as a credit which they can then trade with other members until it is redeemed by the issuer. The credits and debits are kept track of in a central ledger. The sum of all the credits and debits in the system is usually zero. LETS are very active in Australia, New Zealand, and England, where they enjoy government support.
Time Bank:Time Banks are like LETS systems but denominate the currency in hours of service rather than national money. Everyone in the system values their time equally, and therefore the system operates outside the sphere of the IRS. Edgar Cahn is the founder of the Time Banks movement in the USA (www.timebanks.org). However, the idea of trading time dates back for many hundreds of years in some places (most notably Bali).
Currency backed by national money:Currencies that are backed by national money are usually bought by consumers at a slight discount and then used at participating businesses. They can either then be reused at other businesses at face value or redeemed for national money, usually at a small loss. Sometimes some of the national money traded in can be used to support non-profits as is the case with Toronto Dollars.
Currency backed with commodities:Some local currencies are backed by real commodities such as wood or cattle. These currencies have the advantage of being inflation proof and are not usually tied to the national money.
Barter Club:Barter clubs have been steadily growing worldwide for some time. They are usually designed for business-to-business exchanges in lieu of cash. Barter clubs usually demand a membership fee and are run as for profit businesses. Some notable exceptions are the many barter clubs active in Buenos Aires, Argentina who cater to small-scale producers.
Other:Beyond what has been detailed on this map, there are many other types of exchange systems that are being pioneered. We strongly encourage you to explore what these systems are doing.
Start Up:In addition to promoting currencies that are already up and operational, we hope this map can be a tool for promoting currencies that are trying to get off the ground. For that reason we are including a startup category. If you wish to have a startup currency listed please send an email to alan@themoneyfix.org.