If we pretend I'm a gateway, is this how it works?
I accept £100 to my bank account from a buyer who wants to buy bitGBP.
I issue issue 100 matt608GBP to the buyer - which is an IOU from me to the buyer for 100 GBP, an iouGBP - NOT ioubitGBP.
An order book is created in the BitShares client for matt608GBP/bitGBP
People who want to cash out of bitGBP into GBP buy my GBP iou. To withdraw to their bank account means I send them £100 from my bank account. - is that correct?
So each gateway still has their own separate orderboook except its on the BitShares blockchain.
bitstamp doesn't issue "bitstamp bitUSD", they issue "bitstamp iouUSD", then if someone buys it they can redeem it at the exchange for USD.
So it appears this means anyone who has achieved local regulatory approval can be a gateway? You could have lots of small gateways starting up in any country providing the person can use their bank account.
Can it all be done entirely within the BitShares client - no exchange website even needed?! I could simply announce I am now a gateway and provide bank account deposit details on my wall on my BitShares account. People could start making GBP deposits. I issue them matt608GBP. People who want to sell their bitGBP for GBP buy the IOU from my depositors. They can then send me the IOU with a memo including their bank account details. I send them GBP from my account. If the person who bought the matt608GBP changed their mind and wanted to sell it back to GBP, they could send it back to me and I would send them 100 GBP from my bank account (minus a tiny exchange fee).
Voila. An gateway can be launched without even coding anything new!
I have no plans to do this of course due not being able to use my bank account for this, but I'm just thinking theoretically around the world. Any exchanges that already has completed the KYC + regulatory approval could start doing this without even having to do anything to their website. They just create an account on BitShares and put up their bank account details on their BitShares account wall, issue an IOU and start trading. They could optionally just add 1 page to their website displaying iou/bitasset order book if they wanted to. Or they could even just have page telling users they are now a gateway for BitShares and direct them to download the client and visit their account where they will find the banking deposit details.
The only problem is to have regulatory approval they have to have your ID info which means the user would have to verify themselves on the gateways website first before trading, but thats no big deal. It means all currently approved users of any exchange could trade like this, all an exchange has to do to become a BitShares gateway is make a BitShares account, issue an IOU and start trading. No integration is even required. Customers would just need an unique ID that ties them to their exchange account. Simple.
Is my understanding correct?