| Both sides previous revision Previous revision Next revision | Previous revision |
| crco:credit_commons [2025/12/05 12:36] – [Credit commons] asimong | crco:credit_commons [2025/12/17 04:30] (current) – external edit 127.0.0.1 |
|---|
| ## What's a credit commons? | ## What's a credit commons? |
| |
| It's the 'money system' for the commons economy, if you like. Money in the modern world _is_ credit, and from a commons perspective, that credit should belong to all of us, in common, not the banking system. [Thomas Greco](http://lowimpactorg.onyx-sites.io/posts/future-of-money-thomas-greco) coined the term credit commons to describe a global system of mutual credit networks linked via a protocol. | It's the 'money system' for the commons economy, if you like. Money in the modern world _is_ credit, and from a commons perspective, that credit should belong to all of us, in common, not the banking system. _[Thomas Greco](http://lowimpactorg.onyx-sites.io/posts/future-of-money-thomas-greco) coined the term credit commons to describe a global system of mutual credit networks linked via a protocol._ |
| |
| A [mutual credit](/mucr/mutual_credit) trading network in any town can be seen as that town's credit commons. So, for example in Bristol, a city-wide mutual credit network could be called Bristol Credit Commons, where credit is held in common - just as housing is held in common in Bristol Housing Commons. | A [mutual credit](/mucr/mutual_credit) trading network in any town can be seen as that town's credit commons. So, for example in Bristol, a city-wide mutual credit network could be called Bristol Credit Commons, where credit is held in common - just as housing is held in common in Bristol Housing Commons. |
| |
| <caption> | <caption> |
| [Thomas Greco](http://lowimpactorg.onyx-sites.io/posts/future-of-money-thomas-greco) coined the term credit commons to describe a global system of mutual credit networks linked via a protocol. | _[Thomas Greco](http://lowimpactorg.onyx-sites.io/posts/future-of-money-thomas-greco) coined the term credit commons to describe a global system of mutual credit networks linked via a protocol._ |
| </caption> | </caption> |
| |
| |
| A global credit commons can be built by federating local trading groups together (but with autonomy for local groups), and the tool for doing that is the Credit Commons Protocol (see below). So we can talk about credit commons as a concept, but use capital letters when we talk about a town's network, the global network or the protocol. | A global credit commons can be built by federating local trading groups together (but with autonomy for local groups), and the tool for doing that is the Credit Commons Protocol (see below). So we can talk about credit commons as a concept, but use capital letters when we talk about a town's network, the global network or the protocol. |
| |
| ### Global Credit Commons | ### Global Credit Commons |
| |
| The global Credit Commons concept is like the Internet – something that we can all plug into. It can incorporate business networks that trade with each other using mutual credit, fiat, crypto or barter, or anything else. But their relationship with the rest of the CC will be a mutual credit relationship. | The global Credit Commons concept is like the Internet – something that we can all plug into. It can incorporate business networks that trade with each other using mutual credit, fiat, crypto or barter, or anything else. But their relationship with the rest of the CC will be a mutual credit relationship. |
| |
| Elinor Ostrom, in [_Governing the Commons_](http://lowimpactorg.onyx-sites.io/wp-content/uploads/ostrom_1990.pdf), suggested that to grow, commons should be 'organised in multiple layers of nested enterprises', which is exactly what the CC does, in a recursive, fractal way, like [sociocracy](/soci/sociocracy), but for trade rather than governance. | Elinor Ostrom, in _[Governing the Commons](http://lowimpactorg.onyx-sites.io/wp-content/uploads/ostrom_1990.pdf)_, suggested that to grow, commons should be 'organised in multiple layers of nested enterprises', which is exactly what the CC does, in a recursive, fractal way, like [sociocracy](/soci/sociocracy), but for trade rather than governance. |
| |
| <WRAP center centeralign> | <WRAP center centeralign> |
| |
| <caption> | <caption> |
| Unlike commodities that have been used as a means of exchange – like gold – credit money doesn't have to be dug out of the ground, transported around and stashed in vaults, with all the cruelty, environmental damage and wealth concentration that entails. | _Unlike commodities that have been used as a means of exchange – like gold – credit money doesn't have to be dug out of the ground, transported around and stashed in vaults, with all the cruelty, environmental damage and wealth concentration that entails._ |
| </caption> | </caption> |
| |
| ### Credit Commons Protocol | ### Credit Commons Protocol |
| |
| Matthew Slater and Tim Jenkin introduced the Credit Commons Protocol via a [White Paper](https://creditcommons.net/assets/credit-commons.pdf) in 2016. It's a set of standards and rules that govern how transactions are recorded and managed within a network. It utilises digital ledgers, similar to blockchain, to ensure transparency, security, and accountability. However, it differs from blockchain in emphasising mutual credit rather than cryptocurrencies. | _Matthew Slater and Tim Jenkin introduced the Credit Commons Protocol via a [White Paper](https://creditcommons.net/assets/credit-commons.pdf) in 2016._ It's a set of standards and rules that govern how transactions are recorded and managed within a network. It utilises digital ledgers, similar to blockchain, to ensure transparency, security, and accountability. However, it differs from blockchain in emphasising mutual credit rather than cryptocurrencies. |
| |
| A protocol is a bit like the rules of chess. To exchange with each other, we have to agree about how we keep score, otherwise there'll be free-riding, disagreements etc. With chess, if someone has a different idea about what chess is, you're not going to be able to play with them. | A protocol is a bit like the rules of chess. To exchange with each other, we have to agree about how we keep score, otherwise there'll be free-riding, disagreements etc. With chess, if someone has a different idea about what chess is, you're not going to be able to play with them. |
| |
| <caption> | <caption> |
| With chess, it doesn’t matter about the design of your board, or the appearance of the pieces – if the game adheres to the rules of the World Chess Federation, anyone who knows how to play chess can still join in. The same is true of local groups and the Credit Commons Protocol. | _With chess, it doesn’t matter about the design of your board, or the appearance of the pieces – if the game adheres to the rules of the World Chess Federation, anyone who knows how to play chess can still join in. The same is true of local groups and the Credit Commons Protocol._ |
| </caption> | </caption> |
| |
| |
| <caption> | <caption> |
| Interview about credit commons with Tom Woodroof of [MCS](https://www.mutualcredit.services/) and [Local Loop Merseyside](https://localloop-merseyside.co.uk/). | _Interview about credit commons with Tom Woodroof of [MCS](https://www.mutualcredit.services/) and [Local Loop Merseyside](https://localloop-merseyside.co.uk/)._ |
| </caption> | </caption> |
| |
| ## What are the benefits of credit commons? | ## What are the benefits of credit commons? |
| |
| - **Democracy:** it's clear from the name that the means of exchange is credit (a relationship) rather than a commodity or token (a thing), that can be hoarded, accumulated and lent at interest, which concentrates wealth, creating inequality and [preventing real democracy](/thde/the_democracy_problem). | - **Democracy:** it's clear from the name that the means of exchange is credit (a relationship) rather than a commodity or token (a thing), that can be hoarded, accumulated and lent at interest, which concentrates wealth, creating inequality and [preventing real democracy](/demo/democracy). |
| |
| - **Community:** credit commons is inherently community-based, and thrives on trust and cooperation. Communities can be geographical or based on shared interests and goals. Communities get control over their own economies, fostering trust and co-operation and a culture of mutual aid. | - **Community:** credit commons is inherently community-based, and thrives on trust and cooperation. Communities can be geographical or based on shared interests and goals. Communities get control over their own economies, fostering trust and co-operation and a culture of mutual aid. |
| |
| <caption> | <caption> |
| Elinor Ostrom, in _[Governing the Commons](http://lowimpactorg.onyx-sites.io/wp-content/uploads/ostrom_1990.pdf)_, suggested that to grow, commons should be 'organized in multiple layers of nested enterprises', which is exactly what the credit commons does. | _Elinor Ostrom, in _[Governing the Commons](http://lowimpactorg.onyx-sites.io/wp-content/uploads/ostrom_1990.pdf)_, suggested that to grow, commons should be 'organized in multiple layers of nested enterprises', which is exactly what the credit commons does._ |
| </caption> | </caption> |
| |
| |
| <caption> | <caption> |
| Credit commons doesn't require money – ideal for communities that don't have much of it. | _Credit commons doesn't require money – ideal for communities that don't have much of it._ |
| </caption> | </caption> |
| |
| |
| <caption> | <caption> |
| The protocol really is a commons. It belongs to everybody who uses it. The code is all open-sourced and free to anybody to use and even change to suit themselves. | _The protocol really is a commons. It belongs to everybody who uses it. The code is all open-sourced and free to anybody to use and even change to suit themselves._ |
| </caption> | </caption> |
| |
| |
| <caption> | <caption> |
| A ‘commons economy app’ will be developed with 3 accounts – a wallet for shopping, using discounted vouchers bought with cash; a mutual credit account for trading – i.e. where you do your business; and a future use vouchers account, for savings / pension, where vouchers for essentials can be aggregated. The three accounts are connected, and eventually, all transactions can be via mutual credit rather than bank money. | _A ‘commons economy app’ will be developed with 3 accounts – a wallet for shopping, using discounted vouchers bought with cash; a mutual credit account for trading – i.e. where you do your business; and a future use vouchers account, for savings / pension, where vouchers for essentials can be aggregated. The three accounts are connected, and eventually, all transactions can be via mutual credit rather than bank money._ |
| </caption> | </caption> |
| |
| |
| <caption> | <caption> |
| Matthew Slater and Tim Jenkin introduced the Credit Commons Protocol via a [White Paper](https://creditcommons.net/assets/credit-commons.pdf) in 2016. | _Matthew Slater and Tim Jenkin introduced the Credit Commons Protocol via a [White Paper](https://creditcommons.net/assets/credit-commons.pdf) in 2016._ |
| </caption> | </caption> |
| |
| </figure> | </figure> |
| </WRAP> | </WRAP> |
| |
| |
| |
| ## Further resources | ## Further resources |
| |
| - Tom Greco, [_the End of Money and the Future of Civilisation_](https://beyondmoney.net/welcome-to-the-new-2024-edition-of-the-end-of-money-and-the-future-of-civilization/) | - Tom Greco, _[the End of Money and the Future of Civilisation](https://beyondmoney.net/welcome-to-the-new-2024-edition-of-the-end-of-money-and-the-future-of-civilization/)_ |
| |
| - [Credit Commons Protocol](https://creditcommons.net/) | - [Credit Commons Protocol](https://creditcommons.net/) |
| - [Credit Commons documentation and repository on GitLab](https://gitlab.com/credit-commons/credit-commons-documentation) | - [Credit Commons documentation and repository on GitLab](https://gitlab.com/credit-commons/credit-commons-documentation) |
| |
| We'll provide more info in future blog articles, which we'll link to from here. | |
| |
| |
| |
| ## Specialist(s) | ## Specialist curators of this topic |
| |
| |