Time-based currency

In economics, a time-based currency is a currency where the unit of exchange is the hour.

Table of contents

1 In the US
2 In the UK
3 External link

In the US

the neutrality of this section is disputed

In the US, Time Dollars Service Exchange is an alternative economic system measured in hours of service.

Backed by an hour of community service and created via mutual credit, Time Dollars are the simplest currency system to implement: the only infrastructure needed is a central registry, which can be as simple as a notepad or blackboard, to record account balances.

Time Dollars are always sufficient, so they tend to encourage a "favor economy" of cooperation and trade among participants.

Time Dollars are created via mutual credit: Each transaction is recorded as a corresponding credit and debit in the accounts of the participants.

One hour is measured the same independently of place and circumstances, so Time Dollars are immune to the fluctuations in value of commodity-backed and fiat currencies.

In most adaptations of the Time Dollars system, each participant's time is valued equally, whether s/he is a novice or an extensively trained expert. For that reason, the Time Dollars model works best in very narrowly defined communities (retirement homes, for example), where everyone's time, skill, experience, and effort is regarded as equal.

Time Dollars

recognize, and thus encourage, reciprocal community service;
are backed with service time and thus resist inflation without encouraging hoarding; and
are in sufficient supply, enabling trade and cooperation among participants.

In the UK

In the United Kingdom the schemes are called Time Banks and Hour Banks. There are reported to be 60 schemes running in the UK. They are promoted as a tool in community regeneration.