Tokenization on BitcoinSV: fiat gift cards, fiat currencies, physical gold : A short review of the current projects
Recently I noticed that new users are asking legitimate questions about the need for fiat tokenization in the BitcoinSV ecosystem. This is a good summary of the situation:
For average people it's close to impossible to use a token that keeps oscillating in value by more than 50% every month/week/year for payments and for storing value for a decent amount of time while still giving you the safe option of using it anytime you need it. The value of the BSV token will oscillate for years based on multiple factors and that oscillation is inevitable and impossible to prevent. source: u/loktari from reddit
This is 100% true and I am glad someone is asking this. The simple answer is obviously to tokenize more stable currencies on top of BSV. Today the cheapest way to create digital fiat currencies is as tokens running on the BSV blockchain. This is made possible thanks to BitCoin's technological advantages as it is finally allowed to scale.
Here is a short review of the projects that I have found and some of them were only announced last week during Coingeek Seoul.
StableCoins token projects currently happening on BSV (list not exhaustive)
- Yen Point: Tokenizing Japanese Currency on the Bitcoin BSV Blockchain, see https://www.youtube.com/watch?v=gEFbAOj3uAw
- Introducing the Relay Gift Card Dollar Token (USDR) on BSV, see https://medium.com/@relayx/relay-to-launch-usdr-a-digital-dollar-gift-card-on-bitcoin-sv-4ab0d58f5c60
- Tokenized: Issue & Trade Tokens on Bitcoin SV Blockchain, this solution is created especially taking into account the ability to tokenize fiat on BSV, with full KYC/AML compliance. Read more at https://tokenized.com/
- Gold token on BSV, Amleh is tokenizing Gold down to the milligram per token (approx 4 cents at today's price). It allows to buy, sell and invest in physical gold in a vault. watch https://youtu.be/HfHgMDhISGw?t=20749
The Long Term Strategical Roadmap
Should BSV totally abandon the goal of ever being a stable currency ? I don't think so. On the contrary, I think the tokenization of more stable currencies is only the first step toward the global use of BitCoin as a stable currency. Just like the block reward was the way to kickstart Bitcoin's security in the first decade of its existence, with the roadmap to then move to a fee-based model as the reward halves every 4 year and the subsidy slowly disappears.
So what's the roadmap towards BSV becoming stable? I think there are 5 steps.
- Creating fiat tokens on BSV, so that people that don't want volatility but don't mind a small inflation per year start using fiat tokens on BSV (this is most people outside of crypto). Some wallets will allow you to use any BSV app but always keep your BSV in fiat stabletokens. Other stable commodities like gold or precious metals, once tokenized on BitCoin, can complement fiat tokens.
- Small governments issue their fiat currencies on BSV, as it is cheaper than other solutions. This will start as an experiment and slowly become the standard once everyone notices the superiority of this solution. It will probably start with the Antigua and Barbuda government. There are many hints of this, for example Calvin Ayre was appointed Special Economic Envoy of the government.
- Medium governments issue their fiat currencies on BSV.
- Big governements & central banks issue their fiat currencies on BSV
- As we get more adoption & use of BSV, more people need to hold a little bit of BSV for their daily use, which increases demand and reduces the part of speculation, so that the price stabilizes over this process. Once we reach more adoption than the US dollar, BitCoin will become the most stable unit of account in the world, and people will now have more incentive to convert their fiat for BSV, even those that focus on stability.
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