Everything that is part of the collaborative consumption, generates the creation and availability of different financial instruments, one of them is the mutual credit, which has a lot to do with a whole monetary system that is related to time banks, because it is the generation of a loan that does not trigger interest.
When the absence of interests arises, it can be difficult to digest and assume this alternative, because its composition is not compatible with the traditional mode, that's why you can discover everything behind this kind of financial support that is developing today..
The role of mutual credit
Opt for the mutual credit relates to the transformation of a debt, in an income that can be received by all members of this system, where the sum in the totality of the balances is able to cause a zero, this modality has several advantages and disadvantages, but the main thing is that it is a money supply that self-regulates.
The money supply within this dynamic, contracts when capital is needed, but this is developed without any kind that authority that can be imposed on this management, which means that the interest-free loan is available to members of the system as a wide advantage.
But in the same way there are a number of disadvantages that arise on this type of credit, because at the end of the day it's a loan, it may happen that any member when it exploits its profits is able to withdraw with negative balance, but it is an aspect that is limited by assuming only reliable participants.
The alternative of great solutions after mutual credit
The systems they offer mutual credit, usually include up to 2000 limbs, under the objective that this alternative economy can acquire the expected form, on the basis of a community of absolute trust, especially since it can be combined with any kind of alternative currency system.
This credit shapes the sharing economy, because it's about sharing and trading, where a need can be mediate to provide a timely solution, this applies also in the same sense to the presentation of own need, to better dispose of assets that are underutilized.
Being transactions between individuals, fits on the classification of the P2P economy, but the key is that this exchange can respond to the needs that arise, all of this is part of the inspiration of digital technology, so that each participant can get useful answers.
Economic modalities that emit solutions
In the middle of the economy transit different types of support, where it highlights the scope of the mutual credit, as a true contribution to collaborate, from the much more useful and beneficial use of assets, so that they can be at the service of the other, this operation is therefore able to create a business.
Different economic sectors that are part of the development of society, can join this kind of system, to cover more sectors and in that same way reach beyond, everything arises through these opportunities that continue to be defined every day to fit in with modern activities.
Your relationship with the time bank, it has to do with the basic construction of a bank, but through which it is necessary to lend to receive as time passes, this mechanism continues to strengthen community ties, to the point of being a boost for the development of entrepreneurship projects.
The prolonged life of mutual credit
From the beginnings of the figure of the mutual credit, it can be interpreted as part of the fair trade economic development alternatives, that are still alive today because they acquire greater value thanks to the number of entrepreneurs who are currently eager to leave a mark on the world.
The most valuable aspect of these credits, is that they follow a fair functioning, because everyone can receive what he gives, and vice versa, i.e. it is based purely on reciprocity, since this helps to consolidate a more united community and in turn is an economic modality with better opportunities.
The mutual backing of a credit, it's the push anyone needs, especially since it is a way to get liquidity, and in turn participate in the economic aspirations that arise within the system, from that exchange the most daring ideas can come to life and serve as a mutual solution.
