Currency
The Federation does not use any form of currency as we so far know. Those who work for Starfleet are paid for their services with a bed, clothing, food, and other necessities which are enough to make a person comfortable in return for their work.
But for those who are not members of the Federation or Starfleet, how do they live? Is there a form of monetary transaction? How is it some members of Starfleet are able to buy things if there is no system of currency?
Your Gold Is Not Valuable
Outside the order of the money-less Federation exists a method of payment used by most species. The most talked about is the Latinum, gold pressed, and currently available in five forms: isiks, slips, strips, bars, bricks and bloks. The most commonly traded denomination of gold pressed latinum is bars, easily carried around and transportable. The gold part of the physical bar is completely worthless due to its common state across the galaxy. However, the pressed liquid Latinum contained within the gold is thought of as a rare commodity, and so therefore the amount of latinum pressed within the gold is a show of the bar's worth.
Though gold pressed latinum is the most common physical form of payment among civilians and non-Starfleet persons, credits are also transferable via an electronic means, which can be exchanged by thumb prints, DNA scans, and other identification means.
It is unknown if other worlds within the Federation have completely adapted to the disuse of a monetary system, but it is known there is no credit transfer within Starfleet for services and hours worked. It is also unknown the system of Currency used on other worlds, such as Romulus, Cardassia Prime and so forth, though most alien currency is readily converted into the general 'credits'. These credits can from there be 'cashed in' as gold pressed latinum.
Old Earth to Latinum Currency Comparison
For those who study the old ways far more than they live in the new, a rough guide has been created to show the value comparison between Latinum and the Old 20-21st Century Earth 'dollar'.
- isiks (short sk) = cents
- slips (short sl) = dollars
- strips (short st) = $10 each
- bars (short br) = $100 or $1000 each
- bricks (short bk) = $1000 or $5000 each
- bloks (short bl) = $5000 or $50000 each
It is common knowledge to even a Barvolese Slug that each 'denomination' of curreny goes into the other in one way or another. Such as it is, if Latinum, gold pressed, must be compared to the Old Earth 'dollar and cents', then these values are the closest estimation for that purpose. Of course, rough estimation for value of goods, services, and gambling is made on a daily basis for a civilian, and bars are not easily given away, any more than strips or slips are. As humans say, A fool and his gold are soon parted. And as Ferengi say, 'Once you have their money, you never give it back.'
As an example, take a civilian boathouse: This is about 10bl 5bk 7br.
For more information visit:
Daystrom Institute Technical Library