Dear fellow china-interested and chinese bitcoiners,
I plan to contact many china/hongkong based e-shops, like dealextreme and all, to suggest them to accept payments in Bitcoin.
For me, these companies are the perfect next step for the bitcoin economy: They would greatly profit from accepting bitcoins (tiny fees, no chargebacks, potentially enlarged customer base, seting apart from competition), and Bitcoin would instantly gain a lot of publicity.
I need a bit of help to understand how economy would currently work with Bitcoin in China.
The main point would be how to exchange bitcoins to Renminbi, from a e-shop point of view.
The only two exchanges currently doing this is the chinese MtGox branch and btcchina.com. The former has several days in a row with no trades, the latter has a typical volume of less than 500 btc per day. Both seem too low for serious business, where the profit margin probably is on the low digit percent range.
- Is there a way to directly convert bitcoins to Renminbi which I didn't find?
- Converting bitcoins to USD or some other currency, is there an easy way to receive Renminbi with paying less combined fees than with paypal?
There are dozens of these e-shops. I am sure a few of them would listen to what we have to tell them. Is there a realistic way for them to gain from Bitcoin? Or is it too early yet?
Thank you for your thoughts and info!
Ente
I don't think that you have to trade in RMB at MtGox, you can do it in any currency.
I would suggest to trade in USD (being the largest market) and then withdraw in RMB (or HKD), the conversion from USD will be done at the local bank. If the merchants holds USD account at their local bank, then they will be able to receive USD without the conversion costs.
The payment processor is only good if it supports the local currency.
Solution: The e-shops can use the MtGox plugin to accept BTC, then sell the BTC for USD, then withdraw their USD to a RMB account of their choice. That would be the lowest cost to accept BTC.
