We are proposing a new kind of money based on barter. It will enable everyone to trade their time, skills, goods, services and ideas. There will always be enough money, as it is created by the traders like a transferrable ‘I.O.U’.

 

This idea builds on the many successful alternative currencies, exchange and barter clubs already in existence. There are millions of people, all over the world, swapping and exchanging within closed groups. In times of crisis these groups provide a lifeline for people, but the ‘currency’ is limited, exclusive and insecure. ebarts is a global digital barter currency which is as secure, ubiquitous and useful as conventional money.

 

ebarts will:

• enable people to trade without conventional money· reduce waste and energy consumption by encouraging local trade, and the sharing and re-use of resources,

• bring social networks to life, in real communities,

• unleash the potential of people’s natural entrepreneurship and individual talents.

 

ebarts will complement conventional money, and because it is countercyclical it will help to stabilise the conventional economy.

 

The current problem – there’s never enough money

 

There’s never enough money for the things which are most important to us – education, health care, protecting the environment, elder support, decent neighbourhoods, conservation, renewables, opportunities for young people…  For billions in the developing world there is not even enough money for food, water and shelter.  Why is this?

 

Money fulfils three functions: a store of value, unit of account and a medium of exchange. Conventional money has inherent strengths and weaknesses:  because it relies on scarcity to maintain its value, there is a tension between its role as a store of value (which leads to money being removed from circulation, or used for financial speculation), and as a medium of exchange (which requires enough money to be available to fulfil all the transactions that people wish to undertake, or else economic activity will be suppressed). Although money is an excellent basis for international trade and investment, it is less good at supporting local businesses and communities.

 

Yet within every community there is a wealth of unused or wasted resources – wasteland, food-waste, wasted energy, under- or un-used possessions, trash, would-be entrepreneurs and leaders, new ideas, unique creativity and skills, the knowledge and experience of age, the energy and strength of youth, the capacity to care and support,  the unemployed and under-employed.

 

And as iterated above, there is a long list of unmet needs to which these resources could be applied: education, healthcare, protecting the environment, etc.  All we lack is the means of exchange.

 

ebarts is proposed as an additional means of exchange, to complement conventional money. 

 

The solution – other kinds of money

 

In the 1930s a barter currency was set up in Zurich, to keep small businesses afloat.  The system was such a success that it quickly spread throughout Switzerland, and has helped to stabilise the Swiss economy right up to the present day. (There are similar examples from Germany and Austria.) When Argentina defaulted in 2001, barter clubs became the life-blood of communities, with over two million people dependent upon them for their survival. 

 

Since the 2008 financial crisis the barter and exchange economy has been growing rapidly throughout the world.  Business to business barter is now worth more than $12bn.

 

Although barter is a lifeline for the people involved, by its nature it is exclusive and inflexible, and therefore limited.  Unlike conventional money it does not have a standardised measure of value, and it is not universal – trading only takes places within a closed group. The incremental growth of this sector (both not-for-profit and commercial) is not going to meet the needs of the wider population, as groups will remain exclusive, and the goods and services available will be limited. 

 

In order to create a thriving, global exchange economy, a new universal barter currency is required: 

• A common currency used across the existing sector, which also opens the sector up to new people, groups and businesses;

• A currency that is as secure, useful and ubiquitous as conventional money;

• A global digital currency that is accessible wherever people have access to mobile technology or the internet;

• A barter currency, which is radically different from other virtual currencies, as it is not purchased for conventional money.  Instead it is created by the users, like a transferrable ‘I.O.U.’

All currencies are based on trust.  A barter currency is based upon the trust between individuals. 

 

All currencies are backed by assets.  In the past money has been backed by gold, now it is backed by the assets of governments and banks (and ultimately tax-payers).  A barter currency is backed by the unused assets in our communities.

 

What does the future look like?

 

Imagine that ten years from now, ebarts is accepted as a mainstream currency, as convenient and secure as conventional money, with the majority of people having an ebarts account. Crucially, local food, clothing, utilities and other essentials will be available in ebarts.   Inter-generational support networks and heterogeneous groups will have formed to meet local social and environmental needs, using ebarts to reward contributions.  Those previously excluded from economic participation (the poor and unemployed) now have a role in the community, and a support network, reducing the possibility of destitution. 

 

Community resilience and economic activity has increased, and dependence on goods and services that use oil in their production and distribution has decreased.  This is an important move towards sustainable economic development. Pressure on the conventional financial system has reduced, as people have an alternative means to meet their needs.  The money markets are less volatile, and the threat of civil unrest, or worse, reduced.

 

ebarts has encouraged people’s natural entrepreneurship, and individual talents.  New ideas and activities which were not previously ‘financially viable’ have flourished under ebarts. There is a wealth of new ideas and activities to improve social, economic and environmental conditions.