Time Banking and Time-Based Currency in Switzerland

Most people are familiar with the adage that time is money, but few see time as a bona fide replacement for cash, and fewer have actually used it as such.

While in the past, time was generally donated on a voluntary basis or as part of an understanding of mutual support among neighbors or friends, technology has made time banking easier. With time banking, large numbers of people can accurately and easily track their time and turn it into a currency which can be banked and exchanged for desired goods and services.

How does time banking work?

The idea behind time banking is simple. An individual or entity provides a time-based service to another entity. This service could be anything which requires time, such as IT services, consultation, childcare, hairdressing, gardening, construction, tutoring or any other time-consuming activity. The time spent providing the service is recorded in a time account. Time-based units accumulate in the time bank and can be used to purchase time-based services from other individuals when needed.

Which time banking programs operate in Switzerland?

Switzerland, with its long tradition of alternative currencies, banking and social solidarity, is home to numerous time banking programs. The biggest drawback of these programs is that they are primarily regional. This limits your opportunities for earning and spending time. However, there are inter-regional networks which enable the transfer of time balances between two or more participating time banks.

Table 1: Overview of Swiss time banks

Time banking as a retirement plan

In recent years, Swiss time banking initiatives have experimented with the idea of using time banking as part of a retirement plan. This is sometimes referred to as the pillar 4 in reference to the current three-pillar system of the pillar 1 (social security), pillar 2 (occupational benefits), and pillar 3 (private providence planning). The idea behind these experiments is that young and capable adults who provide care to seniors can bank the time spent and then exchange that time for care when they are seniors.

It is worth considering that the time spans involved and the speed with which society changes make time banking retirement plans a rather risky proposal for young adults who are serious about receiving care in their old age. But for those who want to do a kind deed, with the possibility of remuneration in their golden years, retirement time banks can be an interesting option.

Table 2: Overview of Swiss old-age care time banks

Time banking with complementary currencies

There are also other exchanges which operate much like time banks, but use alternative currencies to track and trade time. In a typical time bank, time can only be exchanged for an identical amount of time. On a platform which uses a complementary currency, trades and account balances are denominated by an alternative currency and not by time. However, these platforms may recommend a certain price per hour.

Table 3: Swiss time exchanges which use complementary currencies

Can time banking save you money?

Most time banks treat time equally, regardless of services rendered. If your services have a high monetary value and you have the opportunity to exchange them for money instead of time, you will likely achieve a greater profit by charging fees for your time. However, if you find that your work leaves you with time to spare which could be exchanged against goods or services which you would spend money on, paying in time can save you money – possibly a lot of money.

If you enjoy socializing and meeting new people, the social opportunities which time banks present are worth a mention. Most Swiss time banks operate like clubs and organize regular meet-ups for members. Add to that the inevitable socializing which accompanies exchanging services with other people, and time banking becomes a useful tool to increase you circle of friends and acquaintances.

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