What is a ‘local currency’?
Parity offers a zero interest overdraft in an local currency (). The currency is always equal in value to GBP (1 = £1) and you can spend it within the marketplace. Local businesses post offers and promotions within the marketplace. Parity boosts liquidity of its users and facilitates new trade opportunities in your local business community.
Zero-interest credit facility? How does it work?
With all of our accounts you start with a zero interest overdraft that you can immediately spend in the network. You later sell in the local currency () to top your overdraft back up. As long as you are a Parity member there is no interest, hidden costs or deadlines for repayment. Parity overdraft boosts your local spending power and supports cash flow.
What about taxes? How do I use PRX in my business accounts?
Parity is easily integrated in your business accounts as another method of payment or line in your balance sheet. It’s like cash, but it’s not - so you can’t use the local currency () for everything. Taxes have to be paid in GBP and that’s why we allow blended transactions, half local currency () and GBP (£), so that your business can benefit from this extra liquidity without missing cash when needed.
Can I leave without paying off my credit facility?
If you leave overdrawn, the exit fee is equal to your credit balance and will need to be settled. As long as you are a member there is no deadline for repayment. If you leave with a positive balance, you will have twelve months to spend the remaining balance before your account is closed.
What do I use this local currency for?
Want to…minimise cash out to local suppliers? Purchase new tools or services without spending cash? Treat your team to local perks without footing the bill in pounds? Parity does all of that and more. If a business you currently work with or want to work with is on the network, you can keep your cash in the bank while still purchasing from them using Parity. Cash is king. Save it for when you really need it.
Is it like barter or Bitcoin?
Parity is neither of those. First, it is not like barter, because you have a balance in the local currency () to spend with anyone with listings in the marketplace. Your own listings can be bought by anyone in Parity. It’s not a direct swap like barter. Secondly, it’s not like Bitcoin because you don’t need to buy into the currency first. You just join Parity and receive your zero interest overdraft to increase local spending power and boost immediately your liquidity.