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I've been trying to develop a Stellar-based token for some time now, but i'm a bit stuck in the mud on how to handle liquidity.
Let's say you're Customer A that's loaded $100 into your wallet in my app, and you go to Business X and buy a coffee. $2 of my forked tokens are transferred from CA's wallet to VB's wallet.
It's the end of the week and VB decides to cash out that $2 to their bank account. How do I make that happen? There needs to be some liquidity somewhere to support VB cashing out that $2 to their bank account. I could do it either through some sort of setup where i've got an operating account in their locale, and can simply do an ACH from my local operating account to their account, but I would again need to provide the liquidity.
Is this why people list their coins on an exchange, to get the liquidity they need to help people cash out? For example, with BCH, if you pay someone in BCH, their wallet or their app has to be plugged into an exchange of some kind for them to convert the BCH to fiat and then cash out, right?
In my head this makes sense, but I need a fresh set of eyes so I know I'm thinking in the right direction.
Also am I getting too far ahead of myself? Should I just be relying on Stellar itself and develop a more simple wallet that's simply utilizing already existing liquidity?
Right this is where my head is at right now. But like how then do you get that cash out?
Am I over thinking this? Business B would need to have a setup such that they could convert the stellar to cash and then push it to their bank account right? The conversion of stellar to cash either falls on me to then transfer that cash from the overall liquidity pool into their bank account.
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Thats sort of how I've been thinking about it too. The issue is we're looking at international payments for travelers, so if you're traveler A from the US and you buy coffee in London in pounds, then the coffee shop needs to get those funds to their bank account in the UK. So I guess we'd need to have a local operating account in the UK in order to get the cash equivalent from them cashing out their tokens so they get cash into their bank account.