Bitcoin Forum

Has anyone seen on the form a startup Bitcoin Bank that insures Deposits in USD, <or other native currency?

Ie Insures against price devaluation? It could be profitable when the price is going up; but very important to sell if the prices go down.

I want people to be able to open an account anytime and be guaranteed there deposits regardless of what BTC is trading at.

anyone?   

Well since nobody knows in advance which way the exchange rate will move, nobody can promise the full return if the rate goes up but no loss if the price declines.



There are ways to protect against a declining exchange rate.  There is a premium you pay for that and there is a significant penalty for early withdrawal.  Not only that, there is some exposure to counterparty risk.

One method of providing a "bank account insured with USDs" is to write CALL optioins or buy PUT options, such as those from MPEx.

 - https://en.bitcoin.it/wiki/MPEx
 - http://polimedia.us/bitcoin/mpex.php

But "banking" is something people are looking to earn from, not pay a fee for thus the premiums for these protections are prohibitive for "banking".  If you want insured USDs, trade your coins at an exchange and do an ACH to a bank.  That's the path from BTC to insured USDs.

There has been discussion on ways to more easily hold USDs after converting from BTCs:


Any interest in an offshore bank which accepts & exchanges Bitcoins?
 - http://bitcointalk.org/index.php?topic=102996.0

A "Bitcoin Dollarization" Exchange?
 - http://bitcointalk.org/index.php?topic=104171.0