Parity supports four local firms to transact without cash This week four businesses have used Parity to conduct transactions within our local currency. Parity is a B2B platform in Birmingham that has its own local currency. This week some of its members have had the first chance to really appreciate what Parity can do. It all started on Tuesday when Repc and Kinetic conducted their first transaction. It was supported by our broker and digital platform.
Is Parity like Bitcoin? A common question we get asked when we explain what Parity is is if it is like Bitcoin. Bitcoin is the most well known crypto currency and the first to gain any traction. Parity tries to solve a different problem to Bitcoin and therefore is quite different.
Bitcoin was developed by a pseudonymous person or group called Satoshi Nakamoto in 2008 to 2009. It borrowed ideas from previous projects such as Nick Szabo’s Bit Gold and Adam Back’s Hashcash as well proposing novel solutions to the problem of decentralised digital money.
How does Parity compare with Bristol Pound? We have been on a long journey of development to get to where we are today. I have personally been interested in alternative currencies for a while now. I have studied a wide range of models, from the famous Bitcoin, to Sardex, which is our main inspiration. The largest local currency in the UK is the Bristol Pound. I thought I would share some thoughts on how we differ from the UK’s leading local currency project.
Why is Parity a tool for Local Economic Resilience? A currency designed to support independent businesses and boost the local economy is not a complete novelty mainly because of the long standing experience of the WIR Bank in Switzerland. Established in 1934 by Zurich’s entrepreneurs, WIR was conceived to address the lack of liquidity and credit crunch in years of economic depression.
The financial instability after 1929 made credit unavailable or very expensive, uncertainty reduced the overall consumption resulting in revenue losses; nevertheless the capacity of local businesses to produce and sell had not changed.
Parity app available in the app stores Parity app is now available for both Android and iPhone. Search your app store for “Parity Network” to find it or alternatively follow the following links. You will need a to be a member of the parity network to use this app.
Launch of Parity in Birmingham UK’s first business credit network launched in the West Midlands
Parity hosted its launch event on Tuesday 9th of April at the NatWest Accelerator in Brindley Place, Birmingham. It was well attended by stakeholders from across the West Midlands who were interested in how Parity could help small businesses. We are the first business credit network in the UK and aim to support the regional economy.
West Midlands Combined Authority Social Economy Taskforce Parity is developing a business to business mutual credit system that will launch in the West Midlands in 2019. Over the past six months we have been engaging with a wide range of stakeholders within the West Midlands. We have hoped to learn what the environment is like for small businesses, so we can ensure the service we are developing can best meet their needs.
What is Parity? What is it? Small businesses are the lifeblood of our modern economy. They make up 99% of all businesses in the UK and employ 60% of all workers. Small businesses are usually interested in taking on more clients and delivering more work. Unfortunately many of them find themselves overly reliant on big corporations for the chunk of their work. As seen in the West Midlands with the recent collapse of Carillion; when these fail, small companies and their employees are unduly affected.
The Development of Parity - Business Credit Network for the West Midlands West Midlands Business Credit Network Parity has evolved from a two year project researching a local currency for Birmingham, modelled on the Bristol Pound. The project provided the basis of a working group to explore the potential for an alternative currency in Birmingham. Research conducted included engaging with other local currency models in UK and European markets, allowing the project to fully understand the benefits and limitations for the initiatives.