A liberty credit union

[Porcupine Realtor]

This is an awesome opportunity.  I'd like to invest in a credit union that's pro-privacy.  Someone mentioned on a different thread that we may have some roadblocks with the feds, so that's a consideration.  But if we can offer a good service at a good price, specializing in an online presence, we can offer a home for money for every FSPer that moves.  We need to pursue this.  Who knows someone that owns a credit union?  Banks are different.

[jaqeboy]

http://www.acumuseum.org/

America's Credit Union Museum in Manchester

[Bald Eagle]

I've been tossing the idea around, that for folks to really be able to use Liberty Dollars (LD's) to their full potential, they need to be able to conduct simple financial transactions such as pay rent, buy fuel, electricity, etc.

This would be greatly facilitated through the use of transfer certificates (checks) or electronic Liberty Dollar accounts.

I'd like to discuss with people more knowledgeable about money than I, how LD's can be accepted as payment by a business, but then have some mechanism by which the local LD warehouse (bank) could purchase the promise of payment in LD's for FRN's.  That way everybody is happy.

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[J’raxis 270145]

I've been tossing the idea around, that for folks to really be able to use Liberty Dollars (LD's) to their full potential, they need to be able to conduct simple financial transactions such as pay rent, buy fuel, electricity, etc.

This would be greatly facilitated through the use of transfer certificates (checks) or electronic Liberty Dollar accounts.

I'd like to discuss with people more knowledgeable about money than I, how LD's can be accepted as payment by a business, but then have some mechanism by which the local LD warehouse (bank) could purchase the promise of payment in LD's for FRN's.  That way everybody is happy.

I think this repurchase idea was something Shuvom was working on.

[PowerPenguin]

Looks good. I think that for this to stay honest, we need to allow all members to tour the facility on a regular basis to ensure confidence. It would be fun and promotional, as well.

[picaro]

Credit unions are owned by the members and controlled by a board elected from the membership. A small group of freedom lovers could have a significant impact if they joined a small liberty-leaning CU and became active in its governance. Stop me if you've heard this one before. 

What is stopping us from doing this?   

Getting the silver issue through would be tricky.  Silver deposits would be an added overhead expense, bank/accounting software likely not built for it... also, if you're in the business of making loans in FRN -- deposits in silver could hurt that goal. 

Convincing them to quietly accept silver deposits may not be too difficult.  However it does very little to increase trade in silver... not much different than a safe deposit box.

Getting them to actively promote silver and offer easy silver-FRN conversions may present a greater challenge. 

How would you sell this idea to a credit union? 

The model works better for a currency exchange/coin shop... but more people use credit unions. :/

The following are chartered in NH and have open membership:

Granite State 26,713 members

Holy Rosary Regional

Members First in NH

Bellwether Community 16,713 members

Service Credit Union 100,039 members

St Mary's Bank

Triangle

Credit Union

[ArcRiley]

What is stopping us from doing this?

To start a credit union we need 7 founding board members are required who are residents of New Hampshire and have experience with financial type stuff.  IE, local business owners, accountants, local currencies, etc.  These 7 send a letter of intent to the state banking commissioner with a sort of "petition" of people planning to be members.

In order for it to be a state credit union, vs federal credit union, it must refrain from engaging in interstate commerce.  That means all members must be residents of New Hampshire, investments made to businesses in New Hampshire, etc.  It is not restricted from interstate (or international) check clearing or other such activities.  Doing this keeps it under state regulations which are much nicer than federal regulations.

Under the state, and without bullshit such as the FDIC, we need not comply with the Real ID Act for starters.

Then we begin working on bylaws which fall within the various restrictions and regulations on credit unions as per state banking commissioner.  I have posted these to this forum thread along with a request for interested people to meet on the 21st or 22nd of this month in Manchester.  We need some concrete work toward making this happen, otherwise it'll remain just an idea being kicked around on the forums.

Getting the silver issue through would be tricky.  Silver deposits would be an added overhead expense, bank/accounting software likely not built for it... also, if you're in the business of making loans in FRN -- deposits in silver could hurt that goal.

Getting an existing credit union to do this may be difficult.  With our own it will not.  I'm thinking that we can go even further by encouraging alternative currencies, local currencies, LETS, you name it.

In order to guarantee the privacy of our members we'll have to do some custom setups already.  Things such as possibly storing certain information only as a hash which can be verified against but not retrievable, in order to comply with federal regs while preventing employees/etc from accessing the information directly or searched unless another piece of information is also known.

There's enough geeks in this project to make that happen.

[Dreepa]

The tough part is the whole check writing thing and credit card thing.  Both of which have a ton of Fed laws.

[EthanAllen]

The tough part is the whole check writing thing and credit card thing.  Both of which have a ton of Fed laws.

Use Ripple pay...

[Dreepa]

The tough part is the whole check writing thing and credit card thing.  Both of which have a ton of Fed laws.

Use Ripple pay...

I agree but I think people want to start a 'real CU'....

[EthanAllen]

I'm thinking that we can go even further by encouraging alternative currencies, local currencies, LETS, you name it.

I would suggest rather than a hard currency system look into setting up a B2B mutualist credit clearing system that ties the FSP social network to actual business and services (this is very ambitious). A LETS system is person to person system whereas a B2B mcc system can also loan money (see WIR Bank)

[error]

A "real CU" for their "fake money"?

[ArcRiley]

The tough part is the whole check writing thing and credit card thing.  Both of which have a ton of Fed laws.

Being a state credit union means that the federal laws only regulate specific activities, such as check clearing, rather than the internal operating parameters of the credit union itself.  After looking over both sets of regulations New Hampshire's are far more flexible, acting more like a skeleton bylaws than anything else.

I would suggest rather than a hard currency system look into setting up a B2B mutualist credit clearing system that ties the FSP social network to actual business and services (this is very ambitious). A LETS system is person to person system whereas a B2B mcc system can also loan money (see WIR Bank)

Diversity is the Fuel of Evolution

There is no reason to choose one form of alternative currency system over another.  The credit union can set a generic policy for how new alternative currency systems can be plugged in.  It's not the role of the credit union to create such systems, only support them.

A "real CU" for their "fake money"?

Obviously the primary use of a credit union is to handle USD.

One of the most important things any alternative currency system can do to establish itself as "legitimate" in the eyes of the community is to have some bank exchange in it.  Ithaca Hours, Berkshares, Calgary Dollars, Liberty Dollars, every successful system is accepted by at least one credit union or bank.  Some banks include these alternative currencies with their small business loan programs (ie, as a supplemental, at a lower interest rate as USD, etc), some handle check clearing in these systems, etc.

Further, when USD crashes, the credit union will be well established to continue serving it's role.

[Porcupine Realtor]

Yes, let's sit down together and discuss this more in depth.  I am definitely interested in being a founder.

I will be in Reno next month and have an opportunity to sit down with the president of a credit union there at that time.  If I knew what kinds of things to ask him, I could take advantage of the opp.

[ArcRiley]

I sent out an email to Keith asking if we could meet at the Taproom on the 20-22nd and if so which times would work

My schedule is wide open during that time, for those also interested in founding what blocks of time during those three days don't work for you?  Can someone more familiar with Manchester suggest an alternative meeting place if murphy's taproom doesn't work out?