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2024
December 8th, 2017 at 1:37 pm
I've been thinking about this – what if a credit card replaced points with coins?
Here's how it would work, let's say CitiCard makes a credit card that offers CitiCoins. Citi would publicly and organically release a coin that sort of works like GreenCoin mechanistically – some % of the newly mined coins go to a single address they control. They would hold these inside their non-profit CitiFoundation (a coin mining split might be 90% Foundation, 10% for the miners, as an example). The Foundation would obey a charter, say 20% of the incoming coins go to charitable causes and 80% are distributed to credit card holders. The payout would be the dollar amount spent pro rata per payout period (probably monthly, but daily could exist) to the users, the credit card holders. Instead of points, which have some self-backed value, e.g. 1 point is $0.01 or 25,000 is a flight, they would have no official value, however, they would be transferrable on open markets.
The first, most obvious benefit for Citi is they actually give nothing of value away. They also capture a new market of people that want the coins instead of points (i.e., me), and lastly, they are already licensed money transmitters so they could enter this market/business-activity with much less friction versus organizations that do not have this ability already. The long term benefit gets back to my explanation of how crypto/blockchain is a new system of trust (money) that services the post-manufacturing Knowledge Economy and who's growth and adoption at this point are largely inevitable. As fiat currency becomes replaced, businesses that rely entirely on transmitting fiat currency around no longer have a business, in the same way coal miners die once solar is everywhere. Citi has a foot in the door as they operate a coin transmitting function that is a neat trick, sort of like a side-show freak, to their real business (money transmission). However, if (as) the possible becomes the inevitable, they have a high market value coin (brand) that is a market leader and they are on top with first-mover advantage. As fiat transmitting peaks and begins to decline they have coin transmitting already operating so it's essentially a hedge for them. Hopefully they see the light and call me, because I know exactly how to set this system up for them.
*The charity element is optional to the idea but it could be run by coinholders through a DAO (distributed autonomous organization) that votes with coins ("shares") and Citi sends the coins to where the DAO directs them to.