🤔This is how I think about Cashu. Please let me know if there are any errors in my understanding. 🙏
Payments on a card like this work in the opposite way of a credit card works. When you wave your credit card, you owe some bank money the bank can print for free.
With cashu, the "bank" owes you money that can't be printed for free. You wave your Cashu-powered NFC card at the payment terminal and "the bank" pays the merchant on your behalf like an instantaneous checking account.
The risk of fractional reserve still exists but is mitigated by web of trust and optionality.
I'm sure there are things I've missed, but I find this concept fascinating.