How LETS works


Bega Valley LETS is part of a growing network of people who welcome a system of alternative trading  that enable members to exchange goods and services using little or no cash.
It is a method of trading, which depends on skills and time instead of money, exchanging a unit of local currency (Sapphs), not as an alternative to conventional money but to complement the current system of trade.LETS works on the energy provided by its members

 

The fundamentals of a LETSystem:

A LETSystem is a trading network supported by its own internal currency. It is self-regulating and allows its users to manage and issue their own ‘money supply’ within the boundaries of the network.

LETSystems do not issue any money; each person creates their own.The money only exists as numbers in accounts, moving from account to account. The recording of these transactions is done using a computer. This is very much like having a conventional cheque book account.

Each member holds an account in a database where transactions are recorded. Trading is recorded online with single or multi-list transactions.  All accounts begin at zero. For one account to move up, another account must move down. So at any one time approximately half the members will have positive balances and the other half will be negative.

Negative balances are an essential feature of the system, so they are not to be viewed as bad and wrong (i.e. debts). Negative balances simply mean members have received more goods and services that they have given out.

You can buy something with your first trade. If you wait to earn before you spend, you could find it slower to start trading. If everybody had to wait to earn before they could spend, nobody would get started!

A commitment, or negative balance, represents a willingness to consider supplying goods or services to one or more account-holders at some future date.

In a healthy system, account balances bob up and down, sometimes having a balance in credit and sometimes in commitment. It makes no difference whether you have a positive or negative balance.

Turnover is the main issue.

The most successful members are those with a high turnover because that means that the system is working for them.

A detailed BV LETS Brochure is available HERE.

Our opportunities are limited only by our imagination!

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Bega Valley's own Local Exchange Trading System to purchase goods & services with complementary currency

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