Could BitUSD provide leverage for exchanges?

[donkeypong]

It's not so much that the banks are pushing this solution themselves, but that they are preventing exchanges from having ready access to cash and being able to convert to fiat. Kraken has complained of this in the U.S., where banks are locked up tight and it's had trouble finding a U.S. partner. Over the last week or two, the Bank of China's pressure on exchanges has been the subject of a number of news articles. To be fair to the U.S. banks, they are worried about complying with anti-money laundering laws. But if BitUSD or some solid alternative were available, then it would prevent the need to rely as much on banks. And per that article I linked to in my original post, it looks like even some Chinese exchanges are considering that a layer of fake money or P2P exchanging could make good sense. So the market is coming around to this, even if the push is unintentional.

[bitbro]

I think so, too. And I hope it works out that way. It's interesting to see the pressure building from the banks in China, the U.S., and other places, because it looks like they're driving the market straight towards a solution like this one.

Can you explain what you mean regarding the banks driving the solution?


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[JoeyD]

While I really hope BitsharesX and similar projects open up possibilities for the Chinese people, I cannot make any judgements or expectations on the subject with the limited knowledge I have on how things work in China. I guess this is something the Chinese members of the forums would be better equipped to shed light on. The Chinese have their own way of doing things that differ from both the European and US way of doing things. To be honest I find all the laws and regulations and inter state differences in the US no less confusing than the stuff I'm hearing from China.

[liondani]

I think so, too. And I hope it works out that way. It's interesting to see the pressure building from the banks in China, the U.S., and other places, because it looks like they're driving the market straight towards a solution like this one.

Conspiracy Theory:
Is bytemaster in some way related* with The People’s Bank of China (PBOC) ?
They act in his/our favor 

[donkeypong]

I think so, too. And I hope it works out that way. It's interesting to see the pressure building from the banks in China, the U.S., and other places, because it looks like they're driving the market straight towards a solution like this one.

[Troglodactyl]

I believe this has been a significant goal of bitshares X from the start.  The idea is basically to decouple the exchange between digital and physical from the exchange between different floating priced assets.  If the physical exchange is limited to physical assets for bit assets at about a 1:1 ratio, the exchanges between different bit assets can all take place online in a wider (and thus more efficient) market.  If you can do all the other asset trading online, it should be relatively easy to find someone willing to trade bit[local currency] for physical local currency in person.

[liondani]

What does anyone think of this article (link below). It seems to indicate that Huobi and the Chinese exchanges are exploring adding another layer of either P2P exchange or play money, so that they do not have to constantly convert to fiat (which the Chinese banks are making difficult). What if they had something like bitUSD or bitCNY, fictional yet tangible and valuable, to use in this way?

http://www.coindesk.com/chinese-exchange-huobi-considers-future-bitcoin-marketplace/

 

[donkeypong]

What does anyone think of this article (link below). It seems to indicate that Huobi and the Chinese exchanges are exploring adding another layer of either P2P exchange or play money, so that they do not have to constantly convert to fiat (which the Chinese banks are making difficult). What if they had something like bitUSD or bitCNY, fictional yet tangible and valuable, to use in this way?

http://www.coindesk.com/chinese-exchange-huobi-considers-future-bitcoin-marketplace/