I think it's impossible to add a credit system direct to bitcoin and i will explain why. If the bank loans you $1000 with 10% interest, then you have to get that extra $100 from somewhere. And bitcoin has a number of coins, so, since people can't create more coins from nowhere (Like banks printing money) the most of the people will not be able to pay back the loan with interest.
OP never mentioned anywhere that a credit system should be created.
He is talking about the advantages credit cards have (points, miles, cash back).
Further, he proposed something like 1%-2% cash back / rebate when paying with BTC than compared to paying with FIAT.
@OP
There are already
crypto cards available which give you cashback in crypto when using them.
Further, each merchant would have to decide for him/herself when accepting crypto. Nothing speaks against merchants giving a discount when paying with specific payment methods. Actually this is being utilized already (not with crypto tho afaik).
I am not sure what kind of
system you are thinking about which would be needed.
Simple, all I'm saying is that merchants can give a 2% discount on payment with bitcoins rather than credit cards...
For example if a taxi driver charged $10 using a credit card, they can charge $9.80 using bitcoin as they will avoid the credit card merchant fees.
So the person paying with bitcoin pays less, and that not only offsets the rewards offered by a credit card (cash back, miles, points) but it's also faster since you don't have to wait to earn rewards and it's clearer since you don't have to worry about Merchant Category Codes (MCCs)
That's a good start I think, and it would only be natural for it to be implemented.
Certain merchants like gas station might do individual loyalty programs +2% discount. So you get stacking benefits. Perhaps separating loyalty programs from payment methods is the best way, so you get the best deal using both a loyalty program and a more advantegeous payment method.
