Bartering is the exchange of goods and services between two or more parties without the use of currency.
Based on The Austrian school of economics, BenkikoDAO has a unique view on the relationship between money and barter trade. According to the Austrians, money emerged as a means of facilitating exchange in a barter economy. In a barter economy, individuals must find others who have what they want and are willing to trade for what the individual has to offer. This can be inefficient and time-consuming, as individuals may have difficulty finding others who have what they want and are willing to trade for what they have to offer.
CBK Act 2015, Section 21:All monetary obligations or transactions entered into or made in Kenya shall be deemed to be expressed and recorded, and shall be settled, in Kenya currency unless otherwise provided for by law or agreed upon between the parties.
Money, according to the Austrians, solves this problem by serving as a medium of exchange. Instead of having to engage in a direct exchange of goods or services, individuals can use money to indirectly exchange goods and services. This makes it easier and more efficient for individuals to engage in trade, as they can simply use money to purchase what they want from others who are willing to sell it.
The relationship between money and barter trade is therefore seen as complementary, rather than competitive. The use of money does not eliminate the need for barter trade, but rather makes it more efficient and convenient. The emergence of money is seen as a natural evolution of the barter system, rather than a replacement for it.
BenkikoDAO treats all its transactions as barter trade with the final exchange recorded in our user’s currency of choice for taxes and legal reasons.