Overview | How | Basis | Name | Backing | Implementation | Paper | Presentation | Risks | Benefits

Backing

Common Goods will be backed not by the bank, but by its members. Members will authorize specific local organizations to create the currency by spending it into circulation. Typically, such authorization to a nonprofit organization will take the form of a grant for a certain amount of local currency. For businesses, the authorization will take the form of a loan. Participating members, including the authorized organizations (grantees and borrowers), agree to accept the local currency in turn as payment for their goods and services.

The bank may accept Common Goods as payment for services or repayment of loans, under the same conditions as other participants.