Yet another example of alternative currency thriving in a collapsed economy:
What rules the system has are designed to ensure the tems continue “to circulate, and work hard as a currency”, said Christos Pappionannou, a mechanical engineer who runs the network’s website using open-source software.
No one may hold more than 1,200 tems in the account “so people don’t start hoarding; once you reach the top limit you have to start using them.”
And no one may owe more than 300, so people “can’t get into debt, and have to start offering something”.
Businesses that are part of the network are allowed to do transactions partly in tems, and partly in euros; most offer a 50/50 part-exchange.
“We recognise that they have their fixed costs, they have to pay a rent and bills in euros,” said Pappionannou. “You could say that their ‘profit’ might be taken in Tems, to be reinvested in the network.”
Choupis said she thought the network would have grown even faster that it has if people were not so “frozen, in a state of fear. It’s like they’ve been hit over the head with a brick; they’re dizzy. And they’re cautious; they’re still thinking: ‘I need euros, how am I going to pay my bills?’ But as soon as people see how much they can do without money, they’re convinced.”
The Guardian: Greece on the breadline: cashless currency takes off
The real question is not whether these types of systems work during times of economic crisis, but how they can persist once organizations like the World Bank step in to “restore order.”
See also: The New Currency War.