Community-based Banking (13) World System

Christian record-keepers in a community-based financial system would need to deal with the financial system of the world. People would only be able to buy outside the community, if someone from the community selling stuff out. If a trader sells stuff for any other currency, they would bring it to a record keeper in their community and exchange it for a positive balance in their communities money system. The record-keeper would hold the other money some other person in their community wants to buy something that has to be paid for with that currency.

The trader would have to specify an exchange rate between the community money and the world’s currency. The best way to arrive at this would be to sell any world money they receive to the highest bidder in their community to determine the rate of exchange rate that should prevail. This means that the community would only be able buy from outside their community, if others are selling stuff outside of the community.

Record-keepers who manage currency exchange may need to hold some reserves of the world’s, so that dollars would be available when people in the community wanting to make a purchase from someone in the world system. Managing these reserves would be a challenge. The exchange rate between the community and the world would have to adjusted to ensure that demand for these reserves did not become too great.

The best way to handle reserves of other currencies might be to establish a company or trust to hold them. This would provide more security for record-keepers in times of persecution, as the reserves could not be traced to one person. The company might hold some cash and it could operate a credit card. This would allow them to do business in the world when people wanted to undertake these transactions.

In really troubled times, it might not be possible to trade with the world, so people might have to limit themselves to trading with the wider Christian community (Hundreds and Thousands). This would reduce the division of labour and could decrease wealth.

Read more at Blessed Economist