I’m in the exaaact saaaame boat. I’m from a town of 3000 people haha. Have you thought about buying a crypto ATM?
One would need to wire dapps to exchanges somehow, but than how to guarantee fixed lump fiat sum on receiver side. I am sure there may be solution for this.
ATM loooks like good idea but it has to be maintained, distributed and regulatory approved. I see this happening in Japan but not Philippines …
why would you need to wire dapps to an exchange?
because you have to buy and sell crypto units for cash in order to send them from A->B
Remember task is to send cash over crypto channels and deliver cash
I see I see. Well if he DID own ATM’s on both sides he could make them recognize a special private crypto that releases X dollars which is taken from a business account… just kidding.
As far as exit points I guess there are no ‘good’ ways to skirt around regulation. Without a buyer on the other end you could turn your $ into any commodity you chose, but if no one buys it back, you’re stuck with it.
I am sure there are solutions , after all XRP is in that business more or less …
XRP = Old people Libra
Cardano has a better approach to these problems. Like a universal wallet where you can just transfer “value” and not dollar amounts. If you have a cryptographic verification of commodity X, and a smart contract that can verify some parameters, I could send “value” to the Philippines with the receiver having zero knowledge of what the thing was that created the value. This is obviously a perfect example where the government doesn’t want to know why you’re getting money, but they’ll get their slice and be okay with it.
This is a system where in theory you could liquidate physical labor as it happens. You could liquidate relaxing too.
A) you can spend ada on a stablecoin with the bonus reduced cost. So sms/internet request family member -> ADA abroad -> Merchant (who can choose to liquidate to cash account in dapp on phone for fee. No need for atm.
B) sms/internet request family member -> ADA abroad -> liquidate to cash when transfered -> Merchant. Other option is user takes the fee of liquidating to cash but no bonus then since not using cost reduction method of ada stablecoin.
These two together creates pressure for merchants for using an ada stablecoin to be competitive but allows freedom to choose. No need for atm. No need for banking lisence. Notice family in php only request a spend and its the abroad member with his bank account connected to dapp who spends directly to merchant with bank account connected to dapp. Since service is only facilitating a sale there is no need for a banking lisence as with a transfer from a to b to a new account.
Option C can be added where merchant can also be a cash point and let user have fiat instead of a goods for the purchase. Method a and b can still be used for this.
This allows family members not working to put an abroad working members bank account to use. It is typically the case these can have bank accounts because they have a salary and an ID that sometimes none working family members lack.
Option A B C can for example be bank to bank (user and merchants bank aka paypal model) or the dapp can keep a tab and bulk transfee or if you wanted also have an account and have ada with an exchange and a reserve based on algorithm of spending volumes. For example by user deposit of ada or usd then merchant recieves a deposit from provider. Ada stable to Ada stable will reduce cost and give discount on purchase and extra margin to merchant to give incentives for this.
I think the idea still relies on banking approval though. Countries would catch on real quick if all of a sudden there was a way for their citizens to easily do their banking across seas.
The concept of a universal wallet like I was toying with above is far far off, but I think it’s also what you’re getting at. Otherwise you would need a pirate decentralized exchange to liquidate (I think, im no economist)
By the time they catch on most will have adopted a pure ada stablecoin to ada stablecoin transfer as the system incentivice. And they would have to change the laws and it would hurt the same organizations we try to do better than (world remit paypal etc). And why would they? I shown above it could inject billions into Philippine GDP and thus also taxes instead of the pockets of international corporations. We pass along the savings to the users and merchants and thus to the country as well.
1 Like
I really like the “ask for forgiveness rather than permission mentality”
& it’s true, everyone with something at stake will put up a fight, but those aren’t the voices we need to listen to.
Have you thought about what such a stable coin would look like? ie any parameters/contracts
Yes.
Option A trust based (aka dollar fiat):
ADA transfer: FAM token issued 1 for each usd value of ADA at time of deposit by dapp. At time of sale 1 fam convertes to ADA at market rate and 1 FAM token burned from system. Merchant keeps ada. This could also be done ada to ada but user has the burdon on flux in price the seconds the transaction occurs. For fam token it would be service provider who need to have an ada supply so users do not loose any % the seconds it takes to do the transfer. As mini flux during a say averages out service provider should not loose much if any on this.
From server providers perspective it buys and sells ada every minute to be able to supply ADA (etc I am sure there is a way to find a good model for this as this is a very simple algorithmic approach) and has enough ada at hand to handle the transcation volume. Since transaction fees are minimal for this it should not give a large overhead and would be an almost fixed cost as there is little scaling in cost as sums bought every second increases. For example with 1 billion usd in ADA value transfered over a day in some 100 usd avg transaction that is 10 million transactions and the cost to protect the value of these would be (one transaction every minute)60x24(hours)x0.2(costs per transaction) (lets say cost is 0.2$ per transaction when moving 2 billion usd transfers) or 288 usd. Since the system both needs to buy and sell this is 2x or 576 usd. The cost thus is this sum divided by the 10 million transactions or 0,0000576 usd per transaction. As you can see this is a very minimal cost. I am not sure the scaling but it seems to be based on bytes of transfer so really should be minimal (https://cardanodocs.com/cardano/transaction-fees/)
So whenever FAM is created or burned it can draw from this ADA reserve and give it to the user or merchant as needed. It gets the money to do this from the deposits from the users for each transaction.
For cash you add a cash conversion step in bank so deposit ada - convert to cash for fee (need deal with exchange for this) - 1 fam for each usd - merchant gets fam and is transfered the amount of usd converted. Fam is burned by system. This creates a bank transfer and/or an exchange transfer so will incur more costs than Ada to ada stablecoin.
To save costs system keeps tab of transactions and bank transfers needed happens in a bulk to save cost for example all purchases in a month.
Option 2 connected to a store of value (gold usd etc):
User deposits to a family and friend bank account and this is then guarantees for example with a deal for someone to 1:1 guarantee value in gold. Tokens are issued and used for transfers as above. Difference here is trust is backed by value.
I am sure there are other better options as well. Since the system handles many small sums instead of large deposits it us likely a simple trust method would work. Since every transaction needs only happen at the money of sale then you loose a lot of problems with keeping a store of value that will flux in price. Merchants keeping FAM will be able to get 1 ADA for 1 FAM anything they want to convert as the system is continously buying and seeling ada as money flows into it thus able to always provide 1 ada for 1 fam.
Some examples of stable coin ideas:
(asset backed or algorithm backed)
(issue bonds and buy back bonds when decline/expansion)
https://hackernoon.com/how-to-make-a-stablecoin-stable-cf105ca2c708
and as shown above you can give a discount to users to simply ADA to ADA or ADA(FAM) to ADA(FAM) (a coin token issued under Cardano) this way when we avoid any fees to bank or exchanges we pass along the benefit to the users and consumers while creating drive to adopt our system.
lol well I think it could be a bit more useful than that
Have you taken into consideration that coins minted on Cardano don’t use ADA as “fuel” to do their transactions? Coins created burn themselves, so your FAM tokens would facilitate their own transfers across the network
ADA is also very diluted with units so currently for $5K one has to handle buy/dispose ~100K units … not very practical with mediocre liquidity, eth would be more practical coin , plus it is one among trading gold standards…
It is my understanding they do. That is the whole point is that all the coins created on Cardano will use ADA as the fuel also for the alt coins under Cardano umbrella. This is one of the reasons ADA is going to increase in value. You are paying for getting access to the staking pool network that verifies your transactions instead of a bank doing the same. And it is far far more efficient.
No one is trading with ADA, it’s a platform to build stable coins and things that ARE easy to trade
1 Like
But if you create a coin on ADA, the coin you create can be burned to send. So the transaction would look like Send FAM 100 tokens to -> user B. Cost = 0.0001 FAM token
ADA will be burned in smart contracts and protocols built on the platform – the money isn’t in charging people to send around tokens they create, that’s basically free on a system like this anyway