TillBilly’s Fiat “Crypto-Credits” explained

To protect everyday Shoppers and Merchants from volatility in the value of cryptocurrency, TillBilly introduces “Crypto-Credits”.

Crypto Credits are a closed loop cryptocurrency backed by fiat currency (similar to Stablecoin). In TillBilly’s ecosystem, Crypto-credits provides shoppers a 1:1 assured value w.r.t fiat, and provides merchants assured settlement in Fiat.
TillBilly’s vision of a point of sale transaction model

To understand this, let’s start with a scenario without a “Crypto Credit” token:

Imagine you go to a store and the store only accepts cryptocurrency X-Coin (because of whatever reasons, but lets not get into that) Now since you only have Fiat, there are two options.

  1. You buy X-Coin with your Credit/Debit card at a Crypto-ATM, Crypto-Point of Sale or any instant online service — You pay approx 3% card surcharge and get a poor exchange rate.
  2. You go home, transfer your Fiat from your bank and wait a few hours or a day to buy X-Coins. However the next day when you go into the store, the value of X-Coin has dropped by 10% and now you have to pay 10% more for the same item.
Sounds a bit like Foreign Exchange today right? You convert at the Point of Sale/ATM and pay fees + get poor rates; or you convert beforehand and expose yourself to volatility.

So lets start with basic differentiation between the two tokens:

FIAT_Credit_Token: Internal token representing the Fiat deposited by Shopper. So 1 USD = 1USDc, 1 EURO = 1EURc. The purpose of this token is solely to transform a fiat currency to an equivalent crypto-currency so a shopper does not run into the two issues as above.

Example illustrating USD100 stored as 100 USDc TillBilly Crypto Credit

Since this token is not openly traded on exchange (made possible by Stellar’s implementation of Trustlines and Authorization Flags), The only market makers for Fiat_Credit/BILL pair will be TillBilly and/or other TillBilly users, hence the price parity with Fiat is maintained.

BILL: The utility protocol token accepted at TillBilly POS. BILL will be listed and traded openly on the exchange.

Now every-time a shopper makes a purchase with his/her Fiat_Credit, in effect he/she is making a trade on the exchange to buy BILLs required for the transaction. So more shoppers = more trading volume of BILLs on the exchange. Now It does not matter whether the price of BILL is $1 or $2 or $0.5, as the shopper is simply buying $100 worth of BILLs with his/her USDc.

Many predict that cryptocurrencies will be the currency of the future. While we cannot see the future, we aim is to be the “bridge” that takes the crypto-uninitiated start their journey without the complexities or fear of volatility — the problems that’s keeping blockchain from mass adoption by everyday shoppers and merchants today.
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