Bitcoin Forum

I have been tossing the idea of a cooperative based exchange run and owned by the community. There is alot of talent here and finance as well. I really am not a business person but it could be a way to pave a new path.

Heres a link to that may get some ideas flowing.
http://opensource.com/business/10/7/cooperative-success-understanding-co-op-business-model

At least if it is run and owned as a coop some hurdles we are facing these days towards centralisation points of business maybe made better.

I am not a programmer just a computer enthusiast nor converse in trading or business practice.

Edit to add.

http://en.wikipedia.org/wiki/Cooperative

Co-op" redirects here. For other uses, see Co-op (disambiguation).
A cooperative ("coop"), co-operative ("co-op"), or coöperative ("coöp") is an autonomous association of persons who voluntarily cooperate for their mutual, social, economic, and cultural benefit.[1] Cooperatives include non-profit community organizations and businesses that are owned and managed by the people who use its services (a consumer cooperative) or by the people who work there (a worker cooperative) or by the people who live there (a housing cooperative), hybrids such as worker cooperatives that are also consumer cooperatives or credit unions, multi-stakeholder cooperatives such as those that bring together civil society and local actors to deliver community needs, and second and third tier cooperatives whose members are other cooperatives.

In the United States, the National Cooperative Business Association (NCBA) serves as the sector's national membership association. It is dedicated to ensuring that cooperative businesses have the same opportunities as other businesses operating the country and that consumers have access to cooperatives in the marketplace.

Will the coop pay for all of the fees associated with becoming a currency exchange? The millions of dollars?

All coops cost to set up, its the hows that need to be addressed. Whether by member joining fees or donations that can be paid back over time. I dont know, just tossing something in for the mix of discussions.

Appears me and you are the only ones to "see" this  ;)

although im not american i have tossed around the idea in different threads that instead of one company paying millions of dollars for every state, they set up franchises under a group name.

for instance lets use bitinstant name as an example.

instead of the three main CEO's paying all the licences. they take on 50 franchisee's to own the territory of the state they are from. the franchisee's pay for the licence of that state and get to do business within that state and obviously when all 50 states are licenced can work together with their colleagues in other states to cover the whole country.

then things like bitinstant ATM's can easily be introduced as the licences already exist and each state franchise maintains, installs, and monitors the ATM's within their state.

then things like bitinstant debit cards can easily be introduced as the licences already exist, and each state franchise maintains and distrubutes cards to customers within that state.

then the bitinstant customer service can become local so business and customers can contact someone within their state.

this can expand on to other things like bitinstant courier services where each franchise is a bitinstant distribution centre for that state.

the list of possibilities can expand where each element(state) works together due to being under the same umbrella, while keeping costs for individual franchise business owners low.

why have 50 companies all needing 50 licences (2500 licences) when they can all work together.

lastly people may say 'but this is not decentralised.

well, bitpay, bips, campBX, bitstamp may start a franchise scheme to reduce costs and compete, . all opening franchises under their own umbrella brands. that way its not one company monopolising the market. but still having all the FIAT side of regulation covered. aswell as having 'staff' nearby the state involved with certain transactions to keep everything maintained.

Go ask 50 different fiat banks and get back to us  :)

Answer: they do work together, you just don't get to see it.

We run a democratic Bitcoin Cooperative that does exchanging. You have to live in Vancouver for now, though. Maybe we'll expand one day, if need be, or if somebody outside Vancouver wants to join the Co-op.