Alternative Local Currencies in Europe: Time is Funky Money

AP: From London to Athens via Toulouse, Europe is gripped by 
a sort of monetary euphoria. 

JCT: Euphoria. Must mean Good News! 

AP: Everyone wants to create their own currency! 

JCT: They’re finding out the good news that creating their 
own currency saves them all the interest. 

AP: Is it a direct challenge to eurocrats? Probably. Is it a 
response to the crisis? Maybe. Part one in a series of 
articles on a phenomenon that transcends national borders. 

JCT: An international phenomenon 

We’re going to repeat the weary phrase. Will Greece End Up 
Leaving The Eurozone? The coastal city of Volos, half-way 
between the capital Athens and the second-largest city 
Thessaloniki, is ready for any eventuality. At least, it’s 
nearly ready. 

Some months ago, a local exchange trading system (LETS) was 
created in the port city, which has around 140,000 
inhabitants. The project involves about a thousand people, 
for whom time has now replaced money as a medium of 
exchange. 

JCT: A thousand person LETS in only a few months. Most older 
LETS never got past 100 members in 10 years! Of course, they 
had saboteurs helping them aim at keeping things small! 

AP: For example, I can give an hour of guitar lessons to a 
member of my local LETS network for an hour of service from 
one of the other members. If, instead of hours of service 
accumulated, I receive coupons or ‘local alternative units’ 
(called ‘Tems’ in Volos), I can also use these to buy goods 
and services from businesses that are members of the 
network. The idea is simple and user-friendly – once you 
reach 1,200 Tems you have to start using them, and you can’t 
owe more than 300 – and there is no more effective a system 
when you find yourself pockets empty and unable to buy 
anything. 

JCT: There is no more effective system than LETS banking 
system engineering! 

AP: Cashless currency in Europe 
In Greece, there have been around fifteen active or nascent 
LETS networks in existence since the crisis hit and 
austerity plans were introduced. Yet the country, the cradle 
of modern European civilization, is not the origin of the 
LETS system. It is thought that the first such system was 
introduced in Canada in 1930. 

Jct: No, only the idea was introduced by Quebec Social 
Crediter Louis Even, he didn’t actually print what he 
preached (he was taken out of the play) but Michael Linton 
created the first computerized LETS freeware in 1984 and I 
financed that development in DBase III! 

AP: However, it was the 1990s that marked the golden age of 
the LETS scheme in Europe. In Italy, the system has been 
introduced in its simplest form ‘la Banca del Tempo’ (the 
Bank of Time, BdT). 

JCT: Keep in mind all LETS always link their currency unit 
to the Hour of volunteer labor first thing. 

AP: A bill which was approved in 2000 set the system within 
a legal framework and encouraged communities to open these 
establishments. 

JCT: I didn’t know and it didn’t make the news. But if 
government helped them get organized, that would explain 
their success. 

AP: The success of the scheme is unparalleled; 

JCT: Well, they had 7 million timetrading members in the 
Argentine barter networks so it’s great but not 
unparalleled. 

AP: the northern Italian region of Emilie-Romagna has always 
been one of Italy’s most prosperous areas, yet during the 
financial crisis, banks of time could take centre-stage. 

JCT: It always takes a crisis for people to turn to the only 
true alternative. But as soon as the loansharks open their 
doors for loans again, they usually go back in debt. 

AP: This is precisely what is happening in Spain, where LETS 
schemes have become something of a national obsession. 

JCT: Yes, they’ve finally found out about LETS in Spain and 
the doers have really been doing. 

AP: A blog called vivir sin empleo (‘live without 
employment) has mapped out LETS networks throughout the 
country: around 300 are thought to exist in Spain already, 
with more networks being created every day. 

http://www.theatlanticcities.com/jobs-and-economy/2012/09/time-currency-spains-cities/3262/
has a list of over 300 new timebanks I didn’t know about! 

AP: How does the ‘Banca del Tempo’ work in Italy? 
Whilst bartering, trade and mutual aid seem particularly 
adapted to the social structures along the circumference of 
the Mediterranean, however, the bulk of the LETS scheme’s 
supporters tend to live north of the Alps. 

In France, there are around 500 LETS networks (Sel), some 
very active with hundreds of members, whilst others lie 
dormant. Since the start of the 2011 academic year, two so- 
called ‘accorderies’ have opened in Paris and Chambery in 
south-eastern France. Born of a French-Canadian spin on the 
LETS scheme, these ‘accorderies’ have been created with an 
aim to help those living in working-class areas. 

Finally, in Austria, the ‘Tauschkreis’ is benefiting from 
official recognition from governing institutions in the 
western region of Vorarlberg. According to Rolf Schilling, 
the Tauschkreis project leader, 2,000 people trade 30,000 
hours via the Tauschkreis each year. Most importantly, 
‘Talents’ – the Austrian LETS scheme coupons – are accepted 
by 130 businesses in the region, as well as by a number of 
local collectives, thus making it possible to pay up to 75% 
of local taxes in local currency. 

JCT: They can be used to pay taxes and there are only 2,000 
members? That’s the holy grail of community currency 
credibility. 

AP: In the north, making our own money 
In northern European countries, these alternative currencies 
have freed themselves from systems built on bartering and/or 
mutual aid. They’ve become far more sophisticated; within a 
community, it is possible to exchange your euros against a 
so-called ‘complementary currency’ (in the form of notes or 
credits on an electronic card) which you can use to make 
purchases. The primary aim is to keep wealth within the 
district concerned; when you buy something at a supermarket 
chain, your money usually leaves your community and ends up 
profiting the company’s shareholders at the end of the year 
instead of local traders. 
As such, the target of these new local currencies is not so 
much the euro as it is the functioning of the economy in its 
entirety. 

JCT: So the target isn’t the Euro, it’s fixing the economy 
in its entirety which will happen when all these LETS unite 
into a global UNILETS network. 

AP: Some, for example, advocate a veritable deontology: only 
those companies respecting the obligations of a charter (for 
instance, the sale of organic and/ or fair trade produce) 
are able to join the LETS network. This is often the case 
for complementary currencies in the United Kingdom (and now, 
by extension, throughout all of Europe), which operates 
under the auspices of the so-called ‘transition towns’ 
initiative. 

JCT: How people use their credits is sticking the cashier’s 
nose into none of our business. But this kind of control is 
only possible with a centralized network, the control freaks 
can’t handle physical tokens, they can only control online 
trades. 

AP: With 70,000 BL in circulation and a ‘pay-by-text’ 
system tested by 400 subscribers, you are most likely to see 
these notes being exchanged in cafes and restaurants, thus 
drawing accusations that the Brixton pound is a currency for 
‘champagne socialists’. 

JCT: First it’s not a time-based LETS, it’s a weaker cash- 
based token. And sure it’s a dinky toy. But it’s not the 
cash-based model that’s the phenomenon among people with no 
cash, it’s the time-based model that’s the phenomenon among 
people with plenty of spare time. 

AP: On the continent, it’s Germany that holds the record for 
alternative currency in circulation, with the equivalent of 
900,000 euros available in various local monies. The 
leading German example is the Chiemgauer, a currency 
exchanged by some 3,000 consumers in 600 businesses in 
Southern Bavaria. 

JCT: Another weaker cash-based dinky toy. 

AP: These are impressive figures, to be sure, but it’s hard 
to imagine the leaders of the European central bank worrying 
about the breakthrough of alternative currencies. 

JCT: No kidding, I’d think they’d be terrified thinking that 
every LETS transaction has cost them their interest on loans 
for currency we would have had to borrow to use in the old 
days. 

AP: What’s more, no European government seems able to take 
these initiatives seriously. 

JCT: Yes, bankster toadies in government seem unable to take 
the system that’s costing their masters their vigorish very 
seriously! Har har har. Their loanshark system is being 
supplanted by LETS interest-free timebanking and there’s 
nothing they can do about it!