just like Taras said, decentralized exchange is what bitcoin needs. However i assume USD conversion will be a challenge since that requires some form of centralization.
Actually (in a perfect world) a decentralized exchange would just use payment gateways for getting money in & out. You deposit (or withdraw) money at the gateway. They give you some type of verification usually in the form of a crypto like ripple XRP. If your favorite gateway goes belly up, you just find another gateway processor. No centralization at all!
the problem is definitely with FIAT. if your swapping actual regulated fiat person to person 100 times a day (day trader style) then the red flags of AML will pop up.
this is why its easier to trade a digital database that resembles fiat and then the regulations only kick in when you fully withdraw.
i think an altcoin was trying to develop this. by having the altcoin pegged at $1 value forever and used as the medium for internal trading and then exchanged back into dollars when people want to cash out
Exactly what I thought a couple months back. Create an alt pegged at a dollar, for lack of a better exchange rate. Make sure that that system of things is on the up-and-up as much as possible, operated by honest folks, regardless of the color of their skin.
Its only purpose is to get funds in and outta of the exchange.
Alt X is would be easily exchangeable for BTC. In fact, it probably would only be used by traders, serving no other purpose.
BTW, did I mention NO BOTS in this ideal exchange?
