lab10

Euro-pegged crypto-token.

Santander is testing it (source).
Billon is a Zloty / Euro pegged token in Poland / Malta.

The idea was discussed with RLB OOE and met great interest.

Options for adding it to a bank account.

A) XOR: If a customer wants to have T-Euro, she must explicitly convert Euros to T-Euros, e.g. via Online-Banking.
B) Mirrored: The bank account balance is always mirrored in T-Euro. If a customer spends T-Euro, the bank account balance updates accordingly. If a customer spends Euro, the T-Euro balance updates accordingly.

In both cases, the bank would need

• A mapping of bank accounts to Blockchain addresses
• Mint T-Euros out of thin air
• Transfer T-Euros to a customer address
• A receiver address which accepts T-Euros for conversion back to Euro

It would further make sense to have

• A receiver address per bank account holder which auto-converts back to T-Euro
• A receiver address per bank account holder which doesn't auto-convert (basically a web wallet)

In case B, a web wallet would be required.
It may make sense to implement this with a shared blockchain account which allows transactions from either the bank or the bank account holder (with distinct private keys). The bank would further need

• to monitor the blockchain and update the bank account balance whenever the blockchain balance changes.
• a trigger which updates the blockchain account whenever the bank account balance changes.

A would probably be considerably easier for a bank to implement, because it requires less components to be integrated into existing systems.
For account holders, B would be considerably more interesting, because it doesn't create dead capital. The bank can still offer the possibility to cap T-Euro if an account holder interested in the T-Euro doesn't yet feel confident enough to make the full balance available as T-Euro.

The bank could further position itself as a supernode in a payment channel network suited for fee-less micro-transactions.

Question: Should the divisibility of a T-Euro be bounded at 1 cent too?