> Later on, we will gradually leverage into a fractional reserve, but we will always be completely transparent about our USD reserve levels and how close we are to running out.
So again, you'll be co-opting merchants into a credit issuing agency.
you haven't explained any benefit to the merchant, other than a brief marginal increase in sales, for which they're taking on risk.
What happens if you fly afoul of banking regulations (since you seem to be acting as a bank in this situation), and get shut down by the government?
Thanks for grilling me on this. It's very helpful.
So again, you'll be co-opting merchants into a credit issuing agency.
That's certainly one way to think about it. Things like store credit and gift cards are pretty standard. You could think of a Gresham Account as a continually replenishing gift card that's usable at multiple stores.
Or maybe I don't understand your question. What do you mean, exactly, by "credit issuing agency"?
you haven't explained any benefit to the merchant, other than a brief marginal increase in sales, for which they're taking on risk.
Well, the increase in sales won't be brief. These new customers will be receiving income streams that they didn't have before. Those income streams are permanent as long as Gresham Dollar exists as a currency.
Initially, there is absolutely zero risk to the merchant because Gresham Dollar will be backed 100% by USD. Any time we want to renegotiate reserve ratios with a merchant, that merchant can say no. Their existing GD will still convert.
If you're an extremely conservative merchant and you just want free money, you'll sign up for the period during which we back your account with 100% USD reserves and then you'll part ways with us. You're free to do that.
Maybe you won't want to though. Maybe you don't want to lose business to your competitor who IS still accepting Gresham Dollar at a 95% reserve ratio.
What happens if you fly afoul of banking regulations (since you seem to be acting as a bank in this situation), and get shut down by the government?
I hope this doesn't happen, and I have reasons to believe it's unlikely. But if it does, the way Gresham Dollar is set up, we will always have sufficient USD reserves to meet all of our promised GD-related obligations.
A lot of people wouldn't be happy, including our investors, but it wouldn't be the end of the world. And if we get noticed, then we made a statement and raised awareness for basic income. And maybe we collected some useful data along the way.
So again, you'll be co-opting merchants into a credit issuing agency.
you haven't explained any benefit to the merchant, other than a brief marginal increase in sales, for which they're taking on risk.
What happens if you fly afoul of banking regulations (since you seem to be acting as a bank in this situation), and get shut down by the government?