Is this possible with the help of stablecoin such as GUSD, USDT and smart contract?
Say, such a thing can be devised when someone owning bitcoin wants to borrow fiat currency from others:
1. a smart contract is created for both parties, one end needs to deposit bitcoin into the contract and the other end is required to deposit stablecoin into it. An interest should be negotiated beforehand.
2. only when required assets have been put into the contract by both parties does the contract become active.
3. the borrower of stablecoin then can exchange stablecoin to fiat currency and use it.
4. A deadline is set in the contract that if borrower cannot send back stablecoin into the contract before deadline, the other party obtains the bitcoin.
5. If stablecoin with interest is given back before deadline, both parties get their money back and this process is finished completely.
this is some premature thinking of mine, I am not sure it is technically feasible now.
Not possible now but most probably in the future as in the present times, bitcoin is a mean if investment only, as it doesnt mean that bitcoin has not made any progress, in this passed decade bitcoin has made tremendous progress and from having millions of haters to millions of investors, bitcoin has travelled a long journey but still it is decentralised in most parts of the world and because of which it is now only use as a investment method but definitely in future it could be use as a collateral.
