Next week, we'll look at a number of these local currencies, and see how the Internet might facilitate them. A group of people, usually residing within the same geographic community, joins a formal system for keeping track of the value of goods or services exchanged between members of the group. Anything from lawnmowing to fresh vegetables, typesetting to babysitting, crafts to consultation, can be exchanged. Unlike barter, individual do not trade goods and services directly, but use the local currency to mediate transactions. The two key mechanisms for maintaining a LETS system are an accounting system for keeping track of people's contributions and withdrawals, and a registry or directory that enables people to find the goods and services they seek.
LETS credits are units that communities use to measure the value of exchanges.
In San Francisco, they are called FOGs. One group on the Internet calls their unit of currency VIRTs. The idea of LETS was first developed by Michael Linton , and started in Canada in the early 1980s. LETS systems have spread around the U.S.A., Australia, New Zealand, and the U.K., where there are now around 300 active systems. These HOUR notes, in four denominations, buy plumbing, carpentry, electrical work, roofing, nursing, chiropractic, child care, car and bike repair, food, eyeglasses, firewood, gifts, and thousands of other goods and services.