THE FUTURE OF MONEY Bernard A. Lietaer - library.uniteddiversity ...

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