On the PayCoupons platform, users pay one another with user-issues coupons. Coupons are not a currency, neither an official nor a complementary one, because they do not have a broad range of acceptance points. Instead, coupons are "only" accepted as payment by one user for each type of coupons – the one who issued them.
We designed PayCoupons like this because of the following advantages:
- You always know that you are able to exchange the coupons you hold for something useful. In (small to medium) currency systems however, it can happen that at the time you want to spend your currency there are no useful offers left because users stopped accepting the currency.
- You can easily introduce PayCoupons to your business partners. You will hardly be able to persuade your business partners to use an obscure new currency, but you can probably persuade them to allow a certain amount of credits in your business relationship. PayCoupons is a system to manage such credits (as coupons) in a flexible way within a network of businesses, not just in pairwise business relations.
- Much simpler accounting. This is important for businesses. If you trade in a complementary currency, it is like trading in foreign exchange, and you might make profit or losses. Accounting for all of this is complicated – for cryptocurrencies, there are even dedicated services such as Cointracking now. In PayCoupons however, there are no gains or losses from exchange rate changes because coupons are measured in the same unit as state-issued currencies (currently only Euros, but others can follow).
- Speculation protected. Small currencies that are traded on exchanges are usually highly volatile and prone to exchange rate manipulation attacks. This is not desired when you want a reliable tool for doing business and not for speculation. PayCoupons is made for businesses, so we prevent the volatility issue by allowing the issuer to be the only acceptance point of a type of coupons (the issuer can control who can get their coupons by accepting or declining orders for them). By being limited to potentially just one acceptance point, coupons are by definition not currencies.
- Nobody can secretly devalue your savings. On the other hand, a platform that issued a currency is usually able to "print" more of the currency for itself, thereby devaluing the savings which users have in that currency.
- Inherently theft protected. Stolen coupons are not worth anything because the issuer will not redeem them from somebody who should not have them.
What about the Euro units? In PayCoupons, the value of coupons is measured in monetary units. By doing so, we utilize one of the four functions of money (here, of Euros): that of being a unit of account. A unit is not an object though (ever stored two meters somewhere?), so our Euro based pricing does not transform coupons into the Euro currency. (If so, coupons would be accepted wherever Euros are accepted. But they are only accepted by their issuer.)
And what about PCT? Coupons are not a currency. However, in addition to coupons, we do have a complementary currency on the PayCoupons platform: PCT, used solely for paying the platform usage fees. Read more about it on our PCT Token Distribution page.
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