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Messages - PetterJhon

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General Discussion / A way to mass adoption: consumer credit
« on: July 05, 2019, 06:04:05 am »
Hello everyone,,
Many people shop with credit cards. Banks issue credit to customers and customers use this credit to shop in different stores. Consumer credit boosts sales. With a minor modification, blockchain like bitshares could be used by merchants to issue credit to customers directly, without no middle men.
Every merchant can identify credit worthy customers. Suppose, such a customer wants to buy a smart phone. The merchant can lean the customer into buying a higher end model by offering a postponed payment. Suppose, the phone costs $500. The merchant gives the phone to customer and issues 500 credit tokens (CRED). The customer  gets the phone and -500 CRED on his balance. The merchant gets +500 CRED which he can sell on DEX for 500 USD. At this point the merchant is even: he gave away one phone and received 500 USD. The CRED has value, because it can be used to buy merchandise from the merchant's shop, and many people would prefer to keep their savings in CRED instead of bank saving account. To pay off his debt and to be able to shop again, the customer needs to buy back the CRED on the market. This removes the CRED from circulation and also insures that they have value.

This is a win-win-win situation. A customer who gets a credit is happy, because he doesn't need to pay upfront, and he doesn't need to pay high interest (perhaps, no interest at all). A merchant is also happy, because postponed payments increases sales of higher end merchandise, and he doesn't need to pay fees to VISA, and he fully controls how much credit he issues, interest rates, prices etc. CRED holders are also happy, because they have a highly liquid asset backed by real merchandise, which preserves its value over time as long as the merchant who issued them is doing good.

Please, discuss.

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