Funny, but there's something serious lurking in this comment.
Think about how US dollars declare, on the face of the bill, that the currency is good for all sorts of transactions (all debts, public and private). Even a beggar can get in on the use of this currency. People can easily give to a beggar with almost no overhead, and the recipient can spend the currency almost anywhere.
Credit isn't anywhere near that yet, especially since transaction fees are non-trivial. However, there's been a pretty major barrier to receiving credit payments, and even if someone was willing to pay the fees, there hasn't been a good way to interface with it.
Let's say I pay for two coffees with credit, and a friend wants to pay me with credit for one of the coffees. Even if I were willing to pay the transaction fee, I couldn't take their credit card, easily. PayPal is close to that point, but square is closer.
Settling trivial, private debts with credit will be just as good as any currency that works for all debts, public and private.
With private debts, I believe credit card companies will treat that as a cash advance so the transaction fees will be pretty high. Maybe you can use bank accounts for that but the transfer will probably not be instantaneous.
Great so instead of repaying my friend $10 I can repay him $10 and pay the bank a transaction fee for the privilege ... something there is not making me shout for joy.
Think about how US dollars declare, on the face of the bill, that the currency is good for all sorts of transactions (all debts, public and private). Even a beggar can get in on the use of this currency. People can easily give to a beggar with almost no overhead, and the recipient can spend the currency almost anywhere.
Credit isn't anywhere near that yet, especially since transaction fees are non-trivial. However, there's been a pretty major barrier to receiving credit payments, and even if someone was willing to pay the fees, there hasn't been a good way to interface with it.
Let's say I pay for two coffees with credit, and a friend wants to pay me with credit for one of the coffees. Even if I were willing to pay the transaction fee, I couldn't take their credit card, easily. PayPal is close to that point, but square is closer.
Settling trivial, private debts with credit will be just as good as any currency that works for all debts, public and private.