WIR Bank: A Supplementary Swiss Currency Since 1934

In 1934, the WIR Bank was established as a supplementary currency in Switzerland, offering a unique alternative to traditional banking systems.

The WIR Bank's primary goal was to facilitate trade and economic growth among its member companies.

It's worth noting that the WIR Bank's operations are based on a bartering system, where members exchange goods and services without using traditional currencies.

This approach allows member companies to maintain control over their finances and make more efficient transactions.

The WIR Bank was founded in 1934 by a small group of entrepreneurs who saw their income evaporated by the financial crisis during the inter-war period.

Its first name was Freiwirtschaftsring-Genossenschaft, which was used until 1998 when it began to be called WIR. The main reason for establishing the WIR was the crisis of 29 and the search of how to mitigate its effects and that a future crisis could not do so as much damage again.

Participants may use their units to conduct business transactions between them once they join the WIR. The WIR Bank ceased to be a non-profit entity with expansion.

In 1936, the WIR acquired a licence to act as a bank in Switzerland. This marked a significant milestone in the WIR's history and paved the way for its future growth.

To be a member of the cooperative with voting rights in the general assembly, participants in the WIR payment system have to have actively participated and accepted the WIR and have at least ten shares that will be blocked for sale for the duration of their Membership.

The WIR Franc is a community currency that's widely used in Switzerland, backed by the WIR Bank, a Swiss banking cooperative. It's primarily circulated through affordable loans to small and mid-sized businesses.

The WIR Franc has a fixed value of 1 Swiss franc, but its smaller user base means demand isn't as high as demand for the Swiss franc. However, it serves its purpose well, encouraging trade between Swiss businesses and providing an affordable alternative to business loans denominated in Swiss francs.

For your interest: Swiss Bank Account

One of the benefits of using the WIR Franc is that there are no account fees. You can also bank with Swissquote and Postfinance, which are its banking partners.

If you're interested in trying out the WIR Franc, you can get a CHF 20 trading credit with the code "YUHMONEYLAND". There's also a CHF 75 welcome bonus with referral code LAND25, which is a nice incentive to get started.

The WIR Franc is used by the WIR Bank's business customer base, as well as businesses and individuals who purchase goods and services from WIR Bank customers.

WIR Bank's system is based on a network of local banks that work together to facilitate transactions. This network allows for a high level of security and efficiency.

Transactions are cleared and settled within a few hours, which is faster than traditional bank transfers. Members can access their accounts online or through a mobile app.

WIR Bank's system is designed to be user-friendly and accessible, making it easy for members to manage their finances.

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The WIR franc system is electronic, meaning it doesn't involve physical paper money. Members' trade accounts reflect their WIR franc balance.

WIR francs are issued as credit to its members, who pledge assets to secure the credit lines. This ensures the currency is asset-backed.

Transactions between members using both Swiss francs and WIR francs reduce the amount of cash needed by the buyer. The seller doesn't have to discount its product or service.

The process is quite fascinating. The system relies on a network of interconnected nodes that work together to accomplish a task.

These nodes are essentially tiny computers that can perform calculations and make decisions based on the data they receive. They're incredibly efficient, processing vast amounts of information in a matter of seconds.

The system is designed to learn from its experiences, allowing it to improve its performance over time. This is achieved through a process called machine learning, where the system is trained on a large dataset to recognize patterns and make predictions.

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As the system is trained, it becomes increasingly accurate in its predictions, making it a valuable tool for a wide range of applications. Its ability to learn and adapt is one of its greatest strengths.

The system's architecture is based on a complex algorithm that enables it to process multiple inputs simultaneously. This allows it to handle large amounts of data and make decisions quickly.

This architecture is inspired by the human brain, which is also capable of processing multiple inputs and making decisions based on that information.

The WIR system is often misunderstood as a Mutual Credit system, but it's actually a loan-granting central bank within a cashless closed system.

New WIR Francs can only be brought into circulation when traders take loans from the WIR Bank itself, backed by personal guarantees.

This is different from Mutual Credit systems, where credit is issued directly between traders.

In WIR, only the bank has the power to issue credit to new traders, not other traders.

The bank can issue credit to you, but you can't issue credit to the bank.

WIR Bank operates this way since its founding in 1934, and it's described accurately in German literature as a loan-granting central bank.

The WIR Bank's impact is quite remarkable, particularly in times of crisis. A study by James Stodder showed how the WIR creates a countercyclical system, favouring stability.

This stability is achieved by allowing members to use their own currency in times of low liquidity. The WIR covers its costs through various mechanisms, including a transaction fee of 0.06% for members and double that for non-members.

The WIR also generates income through service charges on mortgages, which amount to 1.75% for the organization's expenses. Interest paid on loans by companies participating in the WIR is another source of income, with official members paying a 3.5% charge on account loans and unofficial members paying a 2.5% charge.

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The WIR's impact on the economy is a fascinating topic. A study by James Stodder showed that it creates a countercyclical system, favoring stability in times of crisis.

This countercyclical system is based on the possibility of using its own currency in times of low liquidity. The WIR covers its costs using different mechanisms.

One of these mechanisms is the transaction fee, which is 0.06% for members and double this for non-members, paid with CHW. The service charge on mortgages for the organization's expenses is 1.75%.

Interest paid on loans by companies participating in the WIR is another source of income. Official members pay a 3.5% charge on account loans.

The interest rate on these loans varies from 1% to 1.5%. Unofficial members pay a 2.5% charge on account loans.

The impact of this phenomenon is multifaceted. It affects various aspects of our lives, from the environment to our health.

One of the most significant effects is on the environment, as it leads to increased pollution and greenhouse gas emissions. This can have devastating consequences, including rising sea levels and more frequent natural disasters.

The health impacts are equally concerning, with exposure to pollutants linked to respiratory problems and even cancer.

In fact, a study found that air pollution is responsible for over 7 million premature deaths worldwide each year. This is a staggering number that highlights the urgent need for change.

Moreover, the economic costs of this issue are substantial, with estimates suggesting that it will cost trillions of dollars by 2050 if left unchecked.