Federating local currencies

The credit commons is the notion, perhaps first voiced by Tom Greco, that local ledgers should be connected together using public infrastructure rails, with each currency retaining control of its own issuance and balance of trade, but governed cooperatively. I hope to explore the details below.

There have been a great many local exchange platforms created in the last few years but no sharing of code and certainly no interoperability between them. Teams who want to facilitate community exchange have given all their effort to building custom software and not enough to re-usable software and not enough to building community.

See the appendix for a condensed list of community exchange platforms none of which are interoperable and many of which have failed to thrive owing to lack of uptake.

Note that while the credit commons itself is proposed to be a mutual credit system, any type of currency could participate. All that is required of a candidate member is an account for import/export and trust from existing members that the candidate will return to zero. This section discusses some of the design parameters of a mutual credit federation.