Mr and Ms Doe, Crypto and the Gold banking system

GoldNRollGoldNRoll Posts: 170 Bronze ✭✭✭

After having discussed with people of all ages about money in general, I came up with a portrait of the Gold user personas: Buck and Jewel Doe.

Buck and Jewel's work is not always a pleasure so they know the value of hard earned money. They want "the economy" to be stable and money to hold value. But they also became dependent of the facility of the electronic money payment means: bank transfers, credit and debit cards, online banking. They don't want to go back in time to use (mostly) cash.

Buck and Jewel agree that Gold holds value over time much more than the "paper" currencies but they associate Gold with an archaic monetary system where they would have to keep nuggets in their pockets, always being in danger of being robbed and not being able to exchange small units of money.

Once you explain to Buck and Jewel that they could use all the modern electronic payment means and the existing security technologies to park the physical Gold in safe depositories, only to exchange the property of that Gold in any micro-division they want using electronic and online payments, they go through that paradigm shift that must of us experienced once. They become aware that they could be part of a monetary system based on something tangible with the same ease of use that they have with fiat.

Now try to explain to Buck and Jewel about the blockchain and its advantages of better securing their money and the money transfers, being the owner and the keeper of their bank accounts... no chance. Buck and Jewel are not tech geeks and they don't really care about technicalities. They don't care about the back-end. They only care about the front-end. Knowing that the Gold is there on their name and having very fast electronic means of payment, is all they need.

Buck and Jewel also want to exchange money (Gold) with people having their accounts in other Gold depositories. Just like with the fiat banking system.

Based on my discussions with Bucks and Jewels, this is what I learned. If we want Gold to be used as money someday:

1) Gold banks should offer to their clients the same services and means of electronic payment as the fiat banks do now. How the back-end is built, centralized servers with "classical" databases and fintech platforms Vs blockchain platforms, is the job of the engineers.

2) the Gold banks backed 100% by Gold (0% fractional) should agree on several auditing firms for the physical gold and a common system of Gold transfer between their client's accounts. That means that they should work together to develop sever-to-blockchain and blockchain-to-server transfers.

3) the Gold banks should compete between them to attract clients but they should unite to lobby the Governments to accept Gold for the payment of taxes. Ultimately all the individuals and the firms pay more than 50% of their income in taxes so having to convert Gold to fiat is what ultimately discourages people to use Gold as money.

Knowing the creativity of the GM community, I look forward to constructive critics and ideas :smile:




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