I was always wondering how a decentralized exchange can perform wire transfers for fiat currencies. If this is solved then I believe we have reached the holy grail. More and more people will jump in since this is the biggest problem exchanges face right now.
excellent analysis as always :)
well, until then (and until we get people on board) what happens in between?
Well the fiat system is not ours, it's owned by the government and the banks.
So they will impose money transmitter license on any exchange, possibly require big insurance, AML/KYC schemes, maybe even direct tax reporting and collection.
It's not our playground, we can only play in our sandbox, but that system is theirs, we can't do anything about that.
What if it happens through a gray zone intermediate like ripple? :P
Ripple is already fully regulated, they have KYC and other nonsense in it.
The problem is that fiat currency, in electronic form, only exists in bank servers, and the government will make sure of that (as they shut down Libertydollar).
Because they don't like their trademark being infringed and people issuing alternative fiat currencies. So their game is only inside the banking system, which means that if you want to interact with the banking system, you have to play by their rules.
The whole point of the cryptocurrency space is to just bypass that. We can just have our own currency, why should we rely on theirs?
I think at some point they would have to play with the rules of the crypto.
All I am saying is that it would be easier for newcomers to join crypto if this option exists. the shift has to happen somehow. it will be harder with such a great divide.
Yes, I think sooner or later banks will join the crypto<>fiat exchange system, either by investing in regulated exchanges or creating their own. I'm worried that things like localbitcoins.com will be shut down eventually.
They will choke the exchanges. So that is why people should start accepting crypto in many stores, especially grocery stores.
I would really like to buy a meal for some Steem or things like that.
Thanks!
I think that is a problem and requires centralisation in the form of gateways who you deposit fiat money with, or rely on to exchange tokens back into fiat.
This is an issue that I don't think has been solved yet in a decentralised trustless manner (but I may be wrong so if someone has an answer please let us know).
I saw fiat gateways on openledger, but never use one. I don't know if thy're working or not.
I suspect they must work if people are using it.