Hi bribed - thank you for your great question!
The online store integration will allow us three options at the outset (and the same will apply to other retailers adopting Monartis payments, via Shopify from the beginning and then from the additional e-commerce platforms over time). Those options are essentially:
1. Set pricing in MNT
2. Peg the price directly to another currency (eg the dollar, as you mention)
3. Peg the price directly to another currency (eg the dollar) and then apply a price modification
In the case of our initial store, we envisage using option 3. So to take how that will work in practice:
Product A might be priced at $50. We will perform the conversion into MNT and then discount, allowing us to shown an MNT price against the dollar price.
So, to take a hypothetical example, product A might cost the buyer $50 (in fiat), but only $45 (in MNT).
That pricing structure allows us to encourage use of MNT from the beginning, which is important for two reasons:
1. We want the currency to be in use. Offering discounts in our own store is one means of encouraging spending.
2. We want transactions flowing through our store from the outset. That's important for demonstrating to other retailers that the integration is successful and that consumers are willing to spending via MNT in a digital store
We hope that answers your question, but do feel free to ask for any further clarification that you might require.
Hi there, thanks for the detailed explanation. This cleared things up and makes sense to me. But you will still have to adapt prices in MNT if the value goes up or down right? I mean for example if product A is listed for $45 in MNT (lets say this would be 20 MNT) and one day later 1 MNT shoots up to $10 each, so you would have to adjust the pricing to 4,5 MNT for product A am I right? Nobody would buy product A anymore for 20 MNT because it would be equal to $200.
Hi bribed
Thank you for your follow up question. In answer to what you are asking here: yes, it will be possible for prices to be updated dynamically, based upon MNT fluctuations. There are effectively two available models for such changes:
1. Using live data, allowing immediate pricing updates to be performed at the time of the user search
2. Scheduled updates. For example, we (or another retailer) might choose to update pricing hourly
The right model for an individual retailer is likely to depend upon their own preferences and the level of price volatility. If the price is particularly volatile at the outset, for example, then it's likely that live rates might be seen as providing the best option.