Conversation starter —> An ANC credit card for use in shops, petrol stations and more.
Attractive deals (products/companies that offer lower percentages for payback) and rates (payback, low borrowing rate for slow Sunday’s purchases) that beat established credit card issuers could be a huge business.
The more the credit card has been used, the lower the percentage for paybacks.
The quicker the payback, the lower the basic fee.
The percentages for borrowing depend on the amount and duration of ANC staking or held.
$ANC cash back? Lock in $ANC for different tiers of fancy metal cards and rewards? Exciting!
Having said, in my opinion, Crypto com’s cards are the gold standard with the all their netflix and spotify tie ins.
It’s a pretty high bar to beat, especially since they have first mover advantage and Matt Damon@Team America.
Not insurmountable if amazing use case can be mooted.
A credit card and decentralization are very contradictory movements.
While a CC would be “cool” and add utility to ANC, it would come at the cost of decentralization. This integration would require some level of KYC and incur large administrative costs.
A credit card that borrows from Anchor (UST) however would make sense and add to lending, as is much needed. (Keep ANC out of it. That adds no utility and makes it convoluted and will turn away 99% of users.) But, then who would put up the collateral? It would need to be issued by a third party who overcollateralizes the credit line they have extended for each of their customers (well or may be not exactly, as not everyone will use all their credit at once, but still).
Edit: not sure if the economics of it would work for the credit card issuer, who has their clients balances entered as UST debt (borrowing), as they’ll need to have assets to overcollateralize it. Unless they can borrow it for cheap…but that would not be very stable. Unless it’s a card for people with little or no credit history who have to put up collateral, and that real money collateral is then changed into crypto by the card issuer to put up on Anchor in order to establish their credit line. That may work. And it certainly would work for users with crypto to put up for collateral but thin credit history, though that market I don’t think is very big. And still the liquidations risk and the variable crypto prices are an issue, unless the credit line is dynamic and changes with the value of collateral. In short, likely too complicated and risky to make a sound business out of issuing a credit card based on Anchor borrowing of UST as the credit line.
Since the Cronos dudes already have a pretty good card going, maybe Anchor can just work out some sort of business promo. Always better to build up on a user base that is already exists.
Anchor Borrow by CDC Debit Cards, or such. Or Buy first pay later, powered by Anchor.
We know CDC doesn’t have their own stablecoin, so maybe there is room for discussion!
Guys don’t know the Chai wallet and meme pay, right? Waiting for international version. I think it is much better than hold shitcoin to get a debit card.
I think that https://www.kash.io/ is trying to do this, protocol can’t directly make credit/debit card since it would require KYC and other regulatory shit.
I would also point out Alice as another product building this for the Terra ecosystem.
Early teasers show both a virtual and physical debit card issued by MasterCard.
For greater reassurance, they have entered a partnership with risk harbor to offer insurance to users.