Bernard Lietaer - The future of money

asset. As is true with all currencies, trust remains the key. The WIR credits are automatically removed from circulation whenever a member reimburses a loan to the centre.

The value of the WIR is pegged to the Swiss franc (i.e., 1 WIR = 1 Swiss franc), but all payments have to be made in WIR. (In technical language, the unit of account is the Swiss franc and the medium of exchange the WIR.) Members report that they participate in WIR exchanges for the following reasons: · It is a very cost-effective way of doing business: commission on sales is limited to 0.6% on deals completed in WIR; · It gives access to a pre-screened and loyal client base; credit is much cheaper than in national currency; · Other services are provided (direct-mail, publicity among members, publications, etc.); · It offers a buffer against exterior shock, such as a sudden increase in the national currency interest rate, or other economic disasters; · It is a way for small businesses to gain some of the advantages to which otherwise only big businesses have access.

WIR, therefore, provides an idea of the economic potential of a complementary currency system when it can reach full maturity.

Regional development currencies One of the most promising applications of complementary currencies - also one of its most recent ones - is its application to