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For some reason, this question triggered an idea. Why not create a 'gift card' system that...uses RPOW/Blockchain/Bitcoin tech, that replaces whichever currency

For some reason, this question triggered an idea. Why not create a 'gift card' system that...uses RPOW/Blockchain/Bitcoin tech, that replaces whichever currency that was used? I know money and currency is tough to replace from the banks and nations crippling grip but...couldn't large retailers just use their sizes to shift how consumers pay for their services. IMO, with Starbucks having more than 1 Billion in their gift card network, I see this idea growing like a weed, if a few people were to experiment with it. On a related note, I think digital currency(ies) could give all parties involved what they want (money/payment/tractability for the companies. goods/services/privacy for the consumer. tractability/data for govts). I hope this industry blossoms, I'm sure it will be only time before someone turns this industry on it's head.

nols 10y ago
There's no real reason for companies to do what you're suggesting. Why would retailers move away from their local currency? And even if they decided to do that why would they switch to something like the blockchain instead of just a database to track holdings?
- heimatau 10y ago
  It would need to be a concerted effort, imo. Not just one or two actors. But if enough market share made the move, the benefits? Numerous. As I already outlined, in my OP. In addition, to what I said, the (new) market would cut out all middle men (Visa, etc...Chase/BoA, etc...maybe even others). I think some downsides would be more or bigger insurers and maybe an aggregate of wealth but even our current system doesn't tackle these issues. No system will be perfect in the first increment but I think this would be a step in a better direction, for all involved.
m-i-l 10y ago
I toyed with an idea a bit like that a few years back. The tokens would be denominated in your national currency (so no exchange rate volatility), could be bought or sold (in batches) for free (depending on mechanism), and were for online purchases or transfers only (so no interfacing with physical point of sale presences required). The purchases could be made for free via a bank transfer to a specified account with your account number in the reference field (these are normally free and near instant in the UK via the Faster Payments Service) and if you wanted to cash out your tokens could could similarly arrange a bank transfer back. It was to be completely centralised, so nothing like Bitcoin. It was actually meant for another idea which required an escrow service. There were no specific advantages to the "senders" of the tokens other than that they could use the other service, but the big benefit to the "receivers" of the tokens was that they didn't have to pay the high credit card processing fees or PayPal fees. Anyway, lots of challenges to setting up a service such as this, such as needing a business account to send/receive the transfers (business accounts in the UK attract usage fees unlike normal personal accounts), and of course all the payments regulation, which would have meant it would have been difficult to operate for free (although the idea had been that the other service would subsidise it).

nols 10y ago

There's no real reason for companies to do what you're suggesting. Why would retailers move away from their local currency? And even if they decided to do that why would they switch to something like the blockchain instead of just a database to track holdings?

heimatau 10y ago
It would need to be a concerted effort, imo. Not just one or two actors. But if enough market share made the move, the benefits? Numerous. As I already outlined, in my OP. In addition, to what I said, the (new) market would cut out all middle men (Visa, etc...Chase/BoA, etc...maybe even others). I think some downsides would be more or bigger insurers and maybe an aggregate of wealth but even our current system doesn't tackle these issues. No system will be perfect in the first increment but I think this would be a step in a better direction, for all involved.

m-i-l 10y ago

I toyed with an idea a bit like that a few years back. The tokens would be denominated in your national currency (so no exchange rate volatility), could be bought or sold (in batches) for free (depending on mechanism), and were for online purchases or transfers only (so no interfacing with physical point of sale presences required). The purchases could be made for free via a bank transfer to a specified account with your account number in the reference field (these are normally free and near instant in the UK via the Faster Payments Service) and if you wanted to cash out your tokens could could similarly arrange a bank transfer back. It was to be completely centralised, so nothing like Bitcoin. It was actually meant for another idea which required an escrow service. There were no specific advantages to the "senders" of the tokens other than that they could use the other service, but the big benefit to the "receivers" of the tokens was that they didn't have to pay the high credit card processing fees or PayPal fees. Anyway, lots of challenges to setting up a service such as this, such as needing a business account to send/receive the transfers (business accounts in the UK attract usage fees unlike normal personal accounts), and of course all the payments regulation, which would have meant it would have been difficult to operate for free (although the idea had been that the other service would subsidise it).