What is WIR money?

I read an article about WIR money issued by WIR bank. Is this actually a currency or just some form of credit or coupons? What is it used for?

Hi there,

The WIR franc (CHW) is a paralel currency issued by the WIR Bank, which specializes in banking for small and medium sized enterprises. There is no physical WIR currency. Transactions can only be made on a credit/debit basis.

The "currency" can be used to settle payments at Swiss businesses which hold WIR accounts (approximately 60,000 participants). It can also be transacted between participants.

While most banks create "money" when they credit accounts or make non-cash loans, these are generally based on a fiat currency (the Swiss franc, for example) issued by a central bank or monetary authority. The WIR franc, on the other hand, is issued and maintained by a specific private retail bank. As such, it is less vulnerable to actions taken by the Swiss National Bank.

Best regards from Moneyguru

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