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Author Topic: Bitcoin Exchange for Local Currency  (Read 902 times)
nestor
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January 23, 2012, 10:02:53 AM
 #1

Are there already any usage scenarios for implementing local currencies on top of or side by side with a bitcoin exchange system ?

nestor

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Stephen Gornick
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January 24, 2012, 01:40:59 AM
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Are there already any usage scenarios for implementing local currencies on top of or side by side with a bitcoin exchange system ?

nestor

Are you referring to having a complementary currency (e.g., along the lines of a BerkShares) that uses Bitcoin technology?  Or are you asking if there are any exchanges between these alternative currencies and bitcoin?

There was a related discussion here:
 - http://bitcointalk.org/index.php?topic=58420.0


nestor
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January 25, 2012, 11:59:56 AM
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Thanks for the link ! What we intend to establish is slightly different.

Considered one has a sincere interest into Bitcoin as a medium of exchange, not just as another speculation platform, the biggest problem right now is to get Bitcoins at all. It's  quite complicated and not cheap at all.

Indeed, on of the simplest ways for a EuroAsian to get hold of Bitcoins is to exchange first Euros against Linden$ on Virwox and then exchange Linden$ against Bitcoins. Some gut feeling tells us that using some kind of "intermediary currency" could empower the Bitcoin economy exactly this way.

So, what we came up with is a framework to set up local currencies which are secured by a commodity basket ( the conventional part ) but are globally exchanged with each other via Bitcoins.

One of the main benefits of running a commodity basket based virtual currency is that there exists an exception regarding e-money regulations for "in-store money". It enables one to become an issuer of e-money based on certificates of partial ownership of the commodity basket. Therefore it's possible to get even a license for around Euro 30k to run your business within a legal, international, regulatory environment. The commodity-certificates could then be exchanged with Bitcoins on base of "International Barter", which is even regulated within GATT. Definitely, an interesting way to go.

Cheers,

Nestor

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