Today cryptocurrencies are sadly seen as very high risk volatile income assets. We have way more ppl speculating on exchanges than using cryptos to buy stuff.
One of the issues I see that cause that is that ppl are motivated to hold their cryptos, specially those which are deflationary.
One way I see to solve that would be to separate the main currency of a blockchain platform from tokens aimed for investing. The main currency would have no incentive to be held or stacked, and there would be tokens to simulate investment funds, fixed income contracts, lending, loaning, shares, etc. This could also motivate banks, specially fintechs, to offer financial services over cryptocurrencies.
We already have governance systems that allow token holders to vote, that could be used for companies to tokenize their shares and have great governance.
For loaning, a bank could trade (main currency) money for a smart contract that registers how often, the amount and the tax that he’d have to pay back. I just can’t figure how it would handle warranties, if the address doesn’t have enough funds on the payment moment, and how inadimplence would be handled after that. But if it does, it could be revolutionary.
The lack of lending support on current cryptocurrencies bothers me. That’s very important, as banks get lent money and loan it to other ppl and that makes economy grow faster. Holding just keep the money stuck. It’d be nice to have lending smart contracts, so that we lend our money to a bank and the smart contract allows us to verify how the fixed income value is growing over time, and then on its ending handle the case of the company not having funds to pay the contract.
Banks could also sell tokens for lending money to them, as fixed income assets, and these tokens could be traded as they get more valuable or when the holder needs the money back earlier.
There have also been some services to bring together ppl who wanna loan money to ppl who wanna lend. As there’s no bank on the middle, that’s cheaper for one and more profitable to the other. Having such services executed on smart contracts would be great, and bring A LOT of new users to smart contracts!
I haven’t seen any of that implemented on any blockchain, are there any ideas for it on ADA? Would its smart contract platform support such use cases?
I think we as community should take out the idea of cryptocurrencies as a no man’s land where ppl look for high risk speculation, and show them are tools for all sorts of financial solutions and services.