This is a question I've been struggling with for a while. Suppose it is possible to have the following:
(i) tokens that behave like at-call deposit accounts, where the token represents a holding of a varying number of units in the currency of denomination (e.g. USD). The number of currency units per token might vary with interest payments for example, just like a typical bank deposit, and
(ii) the protocol allows users with such deposits to make transfer payments specified as units of currency, with the system automatically calculating the equivalent deposit tokens that are transferred, and reporting of transactions and statements for both senders and receivers available in units of currency (as well as deposit tokens if preferred)
When merchants or others receive payments, they actually receive deposit tokens equivalent in value to the specified payment amount. If this functionality on a deposit account were possible, what would be the added benefit of having a cash token (e.g. bitUSD etc) that is also allowed to circulate freely? I appreciate any views on this. Thanks.