ReSource Fundamentals Series — Chapter 1: What is Mutual Credit?

What is Mutual Credit

First of all, let us clear some confusing terminology. Mutual Credit shouldn’t be confused with Mutual Banking, Credit Unions, or Cooperative Banking. While Mutual Credit shares similar ideological roots with the now widely proliferated concept of Cooperative Banking, the two terms refer to two different institutions. While a Credit Union is just a normal bank that happens to be owned by its customers, sharing profits with them and offering them fairer terms on their loans, Mutual Credit is a much farther reaching concept, attempting to fundamentally change what credit actually is.

Where’s the Catch?

Ok, so if it is that easy to create your own micro economy in which liquidity is always available — when and where it is required — then why didn’t this concept outcompete the often exploitative credit practices commonplace in traditional finance?

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ReSource

ReSource

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A blockchain-based mutual credit network for businesses.