E-commerce boss: What’s the point owning crypto if you can’t spend it?

The CEO of a crypto-focused e-commerce platform says his company is determined to ensure digital assets can be spent by consumers — and aren’t just tools for speculation.

Speaking in a Cointelegraph AMA session on YouTube, DeFi For You’s CEO Adam C. Chaplin set out his vision of taking on the likes of Amazon and eBay. His firm’s goal has been to create an environment where cryptocurrencies are easy to understand, paving the way for them to be used to buy and sell second-hand goods.

Pawnbroking, a centuries-old financial practice, is another area where DeFi For You stands out. Chaplin explained that it hasn’t been possible to pawn items online in recent years, but smart contracts and blockchain have removed these technical limitations — enabling someone’s reputation to be recorded in an immutable fashion.

Chaplin added: “The platform brings together everything that’s outstanding about cryptocurrency — fast transfers, easy to use — in one place. It allows people to actually spend their money on something as well.”

At present, the CEO argues that there aren’t a lot of places where crypto can be spent — and decentralized finance ecosystems are vital because they can be used without the need for a bank account.

Setting out the roadmap

DeFi For You began six months ago, and Chaplin said his initial goal had been to help small and medium-sized businesses hit hard by the coronavirus pandemic. It now supports 34 cryptocurrencies and runs on the Binance Smart Chain, where a greater number of transactions can be executed more cheaply.

Aggressive testing has been taking place on smart contracts— and now, the company is confident that it can build the platform. This work is taking place in Vietnam, where development costs are more affordable. Chaplin also revealed that DeFi For You has had a very positive reaction from users who have put its concept to the test. 

He added: “The idea is simple — what’s the point in having cryptocurrency if you can’t spend it?”

Chaplin stressed that it’s going to be “a marathon, not a sprint” to take on Amazon’s vice-like grip on e-commerce — but said DeFi For You has the upper hand because this huge retail titan doesn’t accept cryptocurrencies.

On the finance side of things, he believes DeFi For You can ensure that loans and other forms of borrowing are available to all. Chaplin pointed out that entrepreneurs who may have high amounts of income can often struggle to get loans from banks, as their lending criteria favors people with a stable job over those with earnings that fluctuate month to month. And although lending solutions do exist in the world of crypto, the levels of collateralization they require can often be impractical. “If I’ve got to give you $100 to get $50, I’m not sure if that’s a loan or not — it’s almost back to the old system,” he added.

Perfect for blockchain

According to Chaplin, a lot of projects end up being built on the blockchain even though these business models don’t need this technology to function. This isn’t the case with DeFi For You, which needs fast transaction times, and the ability to establish trust.

“We’d like to be there for small businesses, for the little guy. We’d like to be there for people who want to spend their crypto, we’d like to be there for people who want to rent their yacht out, we’d like to be there for people who want a short-term loan. It brings crypto into the market we all dreamed about,” Chaplin said.

DeFi For You is holding a 24-hour initial DeFi offering on the Binance Smart Chain, which begins at 10pm UTC on 31. Jan.