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Main => General Discussion => Topic started by: xh3 on October 29, 2014, 01:14:08 am

Title: Possible use case: bitUSD backend for centralized exchange
Post by: xh3 on October 29, 2014, 01:14:08 am
Justcoin is shutting down, citing banking issues.  Would it be possible to use the bitUSD as the backend for a centralized exchange?  Liberating the exchanges from banks would make it easier to run an exchange by orders of magnitude. 
so..

How close are we to having fluid ways in/out of bitUSD? 
Is the Bitshares platform ready for such a usage case?
if not how soon?
Title: Re: Possible use case: bitUSD backend for centralized exchange
Post by: Pheonike on October 29, 2014, 01:24:56 am
We should implement ways for transparency. They could scam their users and then try to pin it on bitshares. They would be a good on ramp. Let them deal with kyc and aml.
Title: Re: Possible use case: bitUSD backend for centralized exchange
Post by: luckybit on October 29, 2014, 03:04:15 am
Justcoin is shutting down, citing banking issues.  Would it be possible to use the bitUSD as the backend for a centralized exchange?  Liberating the exchanges from banks would make it easier to run an exchange by orders of magnitude. 
so..

How close are we to having fluid ways in/out of bitUSD? 
Is the Bitshares platform ready for such a usage case?
if not how soon?

Proof of Solvency, but a centralized exchange would cost quite a bit of money to set up due to the recent FinCen announcements.
Title: Re: Possible use case: bitUSD backend for centralized exchange
Post by: Riverhead on October 29, 2014, 03:10:31 am
Justcoin is shutting down, citing banking issues.  Would it be possible to use the bitUSD as the backend for a centralized exchange?  Liberating the exchanges from banks would make it easier to run an exchange by orders of magnitude. 
so..

How close are we to having fluid ways in/out of bitUSD? 
Is the Bitshares platform ready for such a usage case?
if not how soon?

Proof of Solvency, but a centralized exchange would cost quite a bit of money to set up due to the recent FinCen announcements.

Only in the US.
Title: Re: Possible use case: bitUSD backend for centralized exchange
Post by: xh3 on October 29, 2014, 03:50:20 am
It wouldn't matter where it was, just so long as it was accessible to anybody.  Legally, this exchange would only be trading in crypto-tokens.... Like Cryptsy or coined up.

When bitUSD is ready, it should be used in a scenario like this, It would really help adoption if people were able to see it out there solving actual problems. Generating freedoms.  Proving it's metal so to speak.

We just need multiple on/off ramps.  that's the trick tho, the capital flow needs to touch the banks somewhere.  The instant it does, it generates liabilities for whoever handles it.



Title: Re: Possible use case: bitUSD backend for centralized exchange
Post by: matt608 on October 29, 2014, 09:24:00 am
Nice idea  +5%
Title: Re: Possible use case: bitUSD backend for centralized exchange
Post by: CLains on October 29, 2014, 10:26:52 am
ATMs wouldn't need to touch banks  :P

Another use-case: Immigrants to US/Europe who send money back home. Many taxi drivers, [insert stereotypes here], etc. are diligently sending almost everything they earn back to family and friends, and the services they use rip them off with insane fees.. We have the power to fix this injustice.

Edit: lol, found this post right after writing this,
https://bitsharestalk.org/index.php?topic=10679.msg140658#msg140658
Title: Re: Possible use case: bitUSD backend for centralized exchange
Post by: monsterer on October 29, 2014, 12:20:04 pm
How close are we to having fluid ways in/out of bitUSD? 
Is the Bitshares platform ready for such a usage case?
if not how soon?

Then you just moved the problem from the exchange to the on-ramp for bitUSD. The problem is the *banks* - they like to shut things like that down, whether it be exchange or on-ramp.
Title: Re: Possible use case: bitUSD backend for centralized exchange
Post by: ticklebiscuit on October 29, 2014, 12:36:46 pm
Justcoin is shutting down, citing banking issues.  Would it be possible to use the bitUSD as the backend for a centralized exchange?  Liberating the exchanges from banks would make it easier to run an exchange by orders of magnitude. 
so..

How close are we to having fluid ways in/out of bitUSD? 
Is the Bitshares platform ready for such a usage case?
if not how soon?

LOL..US loses world power status cause of corruption stifle innovation! Welcome to mexico!

Proof of Solvency, but a centralized exchange would cost quite a bit of money to set up due to the recent FinCen announcements.

Only in the US.
Title: Re: Possible use case: bitUSD backend for centralized exchange
Post by: xh3 on October 30, 2014, 04:44:29 am
How close are we to having fluid ways in/out of bitUSD? 
Is the Bitshares platform ready for such a usage case?
if not how soon?

Then you just moved the problem from the exchange to the on-ramp for bitUSD. The problem is the *banks* - they like to shut things like that down, whether it be exchange or on-ramp.

That's true, but if there are many dependable ways of getting dollars into and out of bitUSD then there would be no single point of failure, that would be the difference.  the problem may be better handled by the on-ramp, assuming that there are many.
Title: Re: Possible use case: bitUSD backend for centralized exchange
Post by: monsterer on October 30, 2014, 09:27:56 am
That's true, but if there are many dependable ways of getting dollars into and out of bitUSD then there would be no single point of failure, that would be the difference.  the problem may be better handled by the on-ramp, assuming that there are many.

But equally, there are many exchanges which allow you to buy bitcoins with fiat. No difference.