{"id":195,"date":"2026-02-25T16:34:05","date_gmt":"2026-02-25T23:34:05","guid":{"rendered":"https:\/\/maatcrystalvillage.com\/family\/?page_id=195"},"modified":"2026-03-13T12:14:07","modified_gmt":"2026-03-13T19:14:07","slug":"what-is-the-ces","status":"publish","type":"page","link":"https:\/\/maatcrystalvillage.com\/family\/what-is-the-ces\/","title":{"rendered":"What is the CES?"},"content":{"rendered":"\n

What is the Community Exchange System?<\/strong><\/h3>\n\n\n\n

The Community Exchange System (CES) is a community-based, global trading network using a money other than our familiar national ones \u2014 an alternative, parallel, local, community or complementary currency system. In short, the CES is a new money system<\/strong>.<\/p>\n\n\n\n

There are many similar trading systems around the world, commonly known as Community Exchanges, Local Exchange Trading Systems (LETS), Mutual Credit trading systems, or Time Banks. Many commercial \u201cbarter\u201d systems operate in a similar way, but their prime motive is make money of the conventional kind whereas most complementary currency systems are attempts to do without or replace national currencies.<\/p>\n\n\n\n

The main difference between these and conventional money systems is that the scope of the money is usually restricted to a geographical area or organization. Money in the above types of complementary currencies does not \u201cexist\u201d like conventional money so there is no need for a supply of it and you do not need any to start trading. Money in these systems is a retrospective \u201cscore-keeping\u201d that keeps a record of who did what for whom and who sold what to whom. There can therefore never be a shortage of money and money does not have to be created by a third party (banks or government) outside the circuit of buyers and sellers. For this reason, money and credit are free, for the buyers and sellers \u201ccreate\u201d it at the moment of trade.<\/p>\n\n\n\n

There are many different types of complementary currency systems (CCs) and they are growing in popularity throughout the world. Some use \u201chard\u201d currencies, where notes and coins are issued by the group for their own use; others use time as a currency rather than notes; and yet others use a \u201cvirtual\u201d currency which is the recording of the values of goods and services exchanged.<\/p>\n\n\n\n

Complementary currencies foster the real wealth of communities and rebuild a sense of worth and self-esteem among their users. Around the world, they report an increased sense of vitality in all sectors of the communities using them. While these trading systems might have a slightly different function for each of these sectors, it certainly has relevance to all.<\/p>\n\n\n\n

From childcare to karate lessons, from phone companionship to computer programming, and from cooking to gardening, there is no limit to the ways of earning money in these systems. In this way, a community currency acts like a supplementary currency, creating an additional stream of value in a community. By supplementing conventional cash flow with a local currency, a community can maintain full employment and protect itself from changes and fluctuations in the national money supply.<\/p>\n\n\n\n

I help you, and you help another\u2014and someone else helps me. The recipients of help become, in turn, the providers of help. What goes around comes around. The currency you earn by helping others can be used to receive services or help from someone else and buy goods on offer. When you spend your community currency, someone else earns it.<\/p>\n\n\n\n

How does it work?<\/strong><\/p>\n\n\n\n

CES exchanges compile and distribute a directory of goods and services offered by the traders registered with them, as well as a list of their \u201cwants\u201d or requirements. When a trader requires something advertised in the directory the seller is contacted and the trade takes place. The buyer \u201cpays\u201d the seller with the community currency. This usually involves the handing over of a check-like Trading Slip that records how much the buyer is paying for the goods\/service delivered. The Slip is either handed by the seller to a group administrator who will enter the amount into a group account, or the information is recorded directly by the seller on a central computer \u201cbank\u201d. Sales are recorded as credits for sellers and purchases as debits for buyers. The central book keeping system records the relative trading positions of the traders. Those in credit can claim from the community goods and services to the value of their credit and those in debit owe the community goods and services to the value of their debit.<\/p>\n\n\n\n

Traders receive a regular newsletter and statement of account that lists their trades and gives their balance at the end of the period. Information about the trading position of others prevents unscrupulous buyers from exploiting the system. News about the group assists in building links and enhancing the sense of community.<\/p>\n\n\n\n

Is this a form of Barter?<\/strong><\/p>\n\n\n\n

No! Barter almost always involves bargaining between two individuals to establish the relative worth of the goods or services they wish to exchange. There is no bargaining with a community currency. When you purchase something you are in no way obliged to the seller; you \u201cpay\u201d for what you have received by delivering\/selling something at a later time to another trader in the community. Community currencies are as versatile as conventional ones.<\/p>\n\n\n\n

Is this just a tax dodge?<\/strong><\/p>\n\n\n\n

Definitely not! Our motives are noble. We want to create a more equal society where wealth is distributed according to contribution, not according to your ability to \u201cmake money\u201d. In other countries where these systems have become big, the state has either ignored the tax angle because it saves state expenditure on welfare payments, or there is an agreement to provide services to the state. Our approach is that when the CES become big, the state should become a user of the CES and participate in the normal way. In this way the state could credit itself through the services it provides to all members and debit itself by purchasing the services of CES users.<\/p>\n\n\n\n

Can I only trade with members of my own exchange group?<\/strong><\/p>\n\n\n\n

The CES is an international trading network with exchanges in many countries. Credits earned in one exchange can be spent in another, or if you are visiting another area you can trade with local CES traders. New exchanges are starting in new areas all the time, and existing ones are growing steadily.<\/p>\n\n\n\n

What other benefits are there in using a community currency?<\/strong><\/p>\n\n\n\n

One of the reasons we took the initiative to launch this project is that it is in line with New Economics thinking. New Economics is about rebuilding society using alternative\/sustainable economic policies and practices. Community currencies fall into this category because they are instrumental in:<\/p>\n\n\n\n