DEFINITION of 'Time-Based Currency'
A currency whose value is based on one man-hour of labor. A time-based currency is an alternative form of currency most often found in communities that place value on volunteerism and social capital. It has no monetary value.
BREAKING DOWN 'Time-Based Currency'
Time-based currencies are found in time banks, which are groups of individuals and businesses that use their "earnings" of the alternative currency to get others to help them with projects. Because time-based currencies have no value outside of man-hours, individuals and organizations are unlikely to hoard them.