Lending Club Blog

Alternative Currencies

During difficult financial times, people look to get more for their money. Some take that effort so far as to consider forgoing the use of traditional currency at all.

The Chicago Tribune recently reported that some Milwaukee neighborhoods were considering issuing local currency. The local money could be offered at a discount and would only be accepted by local merchants. This system is hoped to strengthen local businesses and thus the local economy. Whether consumers could get better deals using discounted local money at local stores or using regular dollars at national discount retailers remains to be seen.

Local currencies basically help to increase liquidity for what amounts to a bartering of goods and services. The trouble with traditional bartering systems is two-fold: first, it may be difficult to quantify one service in terms of the value of another. Second, it’s unlikely that you’ll be able to find someone who has what you need and also needs what you have. To solve both of these problems, many bartering systems use some form of credits for buying and selling. The local dentist gets credits for services performed on the townspeople that he can then use at other local merchants. Whether it’s credits, local currency, or the US Dollar, all serve the traditional purposes of money: providing a store of value, widespread acceptance, and a medium of exchange.

There may very well be a more efficient solution to the economic needs of society than to use a federally issued currency like the US Dollar. Whether needs are more local or more global, situations often warrant alternative solutions. The proposed local currency in Milwaukee is by no means the first such experiment and will certainly not be the last.

What are your experiences with alternative forms of currency, whether local, bartering, or other?

Wednesday, January 21st, 2009 at 6:17 am

Comments (1)

  1. Alternative Currencies… Suggesting that local
    currency may help but is no solution… “The proposed local
    currency in Milwaukee is by no means the first such experiment and
    will certainly not be the last. That are your experiences with
    alternative forms of currency, whether…

    January 22nd, 2009 at 5:00 pm

Recommended

Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

A Recap: Credit Strength on the Lending Club Platform

We are proud of our… Read More »
July 14, 2016

A Message to Investors from our President and Acting CEO

Today, our President and acting… Read More »
May 19, 2016

Lending Club Receives Tribeca Disruptive Innovation Award

Disruptive innovation comes in many… Read More »
April 29, 2016

Lending Club Business Financing Review

One of the biggest challenges of owning a small… Read More »
April 27, 2016

Lending Club partners with Funding Circle and Prosper to launch Marketplace Lending Association

Read More »
April 7, 2016

Lending Club Welcomes Maryland and North Dakota Investors!

We’re now open to retail… Read More »
February 23, 2016

What is Lending Club?

More than one million Americans have achieved their financial… Read More »
February 16, 2016

Get ready for tax season! Lending Club Now Offering TurboTax Integration for Form 1099s

Read More »
February 12, 2016

Lending Club Success: Surpassing $16 Billion in Loans

Founded in 2007, Lending Club’s… Read More »
February 11, 2016

Credit Performance Update

Summary: Credit performance of our standard program is coming… Read More »
February 7, 2016

2014

We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w