What cryptocurrency actually is?

So me and buddy who is heavily into the whole crypto thing got into an argument.

I said I want to create a workplace system that rewards workers with our created cryptocurrency and gives them ability to borrow our cryptocurrency if the company performs well since the issue of new cryptocurrency ought to be based on companies commodities and performance, thus the banking element is needed. My friend argued that this is wrong approach since the cryptocurrency sole purpose is not to have any mediators in the transactions. I argued that there has to be an agreement in place and it has to follow regulations. We went back and forth and it became evident that our approach to cryptocurrency was different:

My buddy takes cryptocurrency as a thing to avoid any third parties, I interpret cryptocurrency as a FIAT currency replacement.

Which one is it?