Local Exchange Trading Systems

Local Exchange Trading Systems (LETS) also known as LETSystems are local, non-profit exchange networks in which goods and services can be traded without the need for printed currency.

LETS networks use interest-free local credit so direct swaps do not need to be made. For instance, a member may earn credit by doing childcare for one person and spend it later on carpentry with another person in the same network. In LETS, unlike other local currencies, no scrip is issued, but rather transactions are recorded in a central location open to all members. As credit is issued by the network members, for the benefit of the members themselves, LETS are considered mutual credit systems.

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Ideas

• A system that registered laptop owners could allow trade in LETs among identified persons, including trade with laptop shares, further persons could be invited through a web of trust.
• LETs may require and encourage local democratic control any may both require and promote citizenship education.
• A system like the Saber could help to increase understanding for local currencies.^[Mentoring]
• Micro-Finance could be used to provide incentives for established and stable LET economies to change to national currency; this way an established LET would have a reputation that could help to attract micro credits. An OLPC application could help to implement LETs and to allow microfinance providers to measure the health of a LET economy.

See also

• WIR Bank - a very mature complementary currency system