Fund withdrawals

Functionality discussions and feature requests

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seanrphl
Posts: 17
Joined: Fri Apr 15, 2005 8:26 pm
Location: Philippines

Fund withdrawals

Post by seanrphl »

I don't know if this a premature question, I just checked out the online documentation at the web site. I haven't yet checked the demo site since I am still waiting for the approval of my registration.

I haven't seen any feature/module/functionality to withdraw funds/credits. Say I have placed some credits/units and accumulated more credits/units through payments from other members and I want to withdraw funds so I can place it somewhere else or use it for other purposes? Is there a procedure I can do to make this happen?

Thanks! :D

rinke
Posts: 87
Joined: Thu Mar 31, 2005 4:54 pm

fund withdrawals

Post by rinke »

Usually, when you want to withdraw units from your account, you want to receive something back (in most cases: cash). It is clear that this action cannot be done by software which is not connected to your personal cash account at your personal bank. Therefore, such an action will always have to be performed at an office of the organization running cyclos.

In such a case, there are several possibilities in cashing units. You could just transfer units to the debit account, and get your cash from the office. Of course, there will be some exchange rate for this (often 1:1), but there are possibilities that your organization might charge an extra fee for this.

Another possibilities is changing account units into voucher units. These are "paper" units you can buy at the office; usually this is done by transfering units to the voucher account.

The conclusion is, that this issue is more determined by the rules which your local organization will set, than by limitations of the software. Your local organization might even decide, that it is not possible at all to cash units.

Maybe Hugo has any additions to this??
________________________
Rinke Hoekstra
cyclos project team,
STRO.

seanrphl
Posts: 17
Joined: Fri Apr 15, 2005 8:26 pm
Location: Philippines

Re: fund withdrawals

Post by seanrphl »

rinke wrote:Usually, when you want to withdraw units from your account, you want to receive something back (in most cases: cash). It is clear that this action cannot be done by software which is not connected to your personal cash account at your personal bank. Therefore, such an action will always have to be performed at an office of the organization running cyclos.

In such a case, there are several possibilities in cashing units. You could just transfer units to the debit account, and get your cash from the office. Of course, there will be some exchange rate for this (often 1:1), but there are possibilities that your organization might charge an extra fee for this.

Another possibilities is changing account units into voucher units. These are "paper" units you can buy at the office; usually this is done by transfering units to the voucher account.

The conclusion is, that this issue is more determined by the rules which your local organization will set, than by limitations of the software. Your local organization might even decide, that it is not possible at all to cash units.

Maybe Hugo has any additions to this??
Oh yes thanks a lot. I was thinking of ways that for example or units in circulation within the LETS are all backed up by actual cash in the bank (100%). A member withdraws the units and converts them into cash. I was just apprehensive that the actual number of units in the LETS is more than than it is within the bank (thus mopping up of units in the system). How will it be balanced?

rinke
Posts: 87
Joined: Thu Mar 31, 2005 4:54 pm

Re: fund withdrawals

Post by rinke »

seanrphl wrote: I was thinking of ways that for example or units in circulation within the LETS are all backed up by actual cash in the bank (100%).
This is not the practice in LETS, as LETS-accounts are usually all balanced around zero, meaning that all balances of all members summed up equal zero. However, there are several other trade system models which work in the way you are suggesting.
seanrphl wrote: I was just apprehensive that the actual number of units in the LETS is more than than it is within the bank (thus mopping up of units in the system). How will it be balanced?
When you are talking about these systems, you are not talking LETS anymore, because the number of units in LETS going round is always variable from moment to moment. In LETS, units are created on the fly, just because one account is going more into negative, to the benifit of another account going more into positive.

There are however trade systems which work like this, and which explicitly try to create new units, just the way the normal bank system creates new money. If you are interested in this subject, please refer to the website of STROhalm (www.strohalm.nl), the creator of cyclos. The english part of the site is still under construction though.

The cyclos software is explicitly built as such, that it can handle most different types of community currency systems - not only LETS-alike systems.
________________________
Rinke Hoekstra
cyclos project team,
STRO.

seanrphl
Posts: 17
Joined: Fri Apr 15, 2005 8:26 pm
Location: Philippines

Thanks!

Post by seanrphl »

Thanks for the explanation. I am still checking out cyclos on our local install to figure it out further.

:)

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