Nxt Forum

Nxt Discussion => Nxt Asset Exchange => Topic started by: superresistant on May 25, 2014, 03:45:37 pm

Title: Asset Euro cash
Post by: superresistant on May 25, 2014, 03:45:37 pm
Greetings,

I started a discussion in French (https://nxtforum.org/francais-%28french%29/asset-euro/) about the Asset Euro cash and I would like more comments & critics about it.

So here is the idea :

I want to create the Asset Euro cash on the Nxt asset exchange.
The value of 1 Asset Euro cash will be about 1 Euro. (Actually it has to be a little bit more than 1 Euro)
Owners of Asset Euro cash will be allowed to redeem for real Euros in cash.
The asset will be managed by partners in multiple location in Europe (or maybe outside of Europe if there is a demand).

It'll require a minimum amount to redeem.

I need so solve the problem of liquidity.

How to assure a constant cash flow ?
Asset Euro cash <-> Euro in cash <-> Euro in bank <-> Bitcoin <-> Nxt

Any comment ? What do you think ?
Title: Re: Asset Euro cash
Post by: Berzerk on May 25, 2014, 05:47:34 pm
This needs to be backed by real euros. Then it doesn't need liquidity. People can buy the shares if they need it. If they don't need it anymore you buy them back.
Title: Re: Asset Euro cash
Post by: josephliton on May 25, 2014, 05:57:47 pm
Greetings,

I started a discussion in French (https://nxtforum.org/francais-%28french%29/asset-euro/) about the Asset Euro cash and I would like more comments & critics about it.

So here is the idea :

I want to create the Asset Euro cash on the Nxt asset exchange.
The value of 1 Asset Euro cash will be about 1 Euro. (Actually it has to be a little bit more than 1 Euro)
Owners of Asset Euro cash will be allowed to redeem for real Euros in cash.
The asset will be managed by partners in multiple location in Europe (or maybe outside of Europe if there is a demand).

It'll require a minimum amount to redeem.

I need so solve the problem of liquidity.

How to assure a constant cash flow ?
Asset Euro cash -> Euro in cash -> Euro in bank -> Bitcoin -> Nxt

Any comment ? What do you think ?

Very Interesting Indeed.
Title: Re: Asset Euro cash
Post by: superresistant on May 25, 2014, 06:10:20 pm
This needs to be backed by real euros. Then it doesn't need liquidity. People can buy the shares if they need it. If they don't need it anymore you buy them back.

Yes but in the case of high redeem-for-real-euro-cash demand, the euro cash supply will run out.

Then the flow must be :

Nxt -> BTC -> euro bank -> real euro cash

This take a lot of time. It mean that the redeem will not be available.
Title: Re: Asset Euro cash
Post by: jl777 on May 25, 2014, 06:26:00 pm
This needs to be backed by real euros. Then it doesn't need liquidity. People can buy the shares if they need it. If they don't need it anymore you buy them back.

Yes but in the case of high redeem-for-real-euro-cash demand, the euro cash supply will run out.

Then the flow must be :

Nxt -> BTC -> euro bank -> real euro cash

This take a lot of time. It mean that the redeem will not be available.
You would need need to have sufficient capital to have all the expected cash redemptions on hand, probably 10% of deposits would be plenty.

So, when somebody redeems NXT, it goes into the forever fiat pipeline and will eventually replenish the cash that you immediately made available

Title: Re: Asset Euro cash
Post by: bluemeanie1 on May 25, 2014, 11:57:05 pm
your main problems are legal.

typically this sort of thing is highly regulated in the First World.

here' s a good incident to familiarize yourself with: http://en.wikipedia.org/wiki/Beenz.com

while I think this idea is great, and I've written about it before (https://nxtforum.org/asset-exchange-62/how-to-make-your-own-local-fiat-exchange-with-nxt-ae/) I think we need to be realistic about expectations.

-bm
Title: Re: Asset Euro cash
Post by: superresistant on May 26, 2014, 10:17:45 am

I made some calculation and it seems that the fees are really low if you conciser a minimum amount to redeem.

About legality, I don't think it is a concern.
The Asset Euro cash is not a currency, Nxt is not a currency and the cash is invisible.
The Asset Euro cash is not a company, no profit will be made.
It will be decentralized, there will be no one behind it.
You don't know me, I don't know you. I will not have any information about other partners.
The transactions in bank will be made with prepaid anonymous bank card from anonymous account on BTC exchange.

Title: Re: Asset Euro cash
Post by: bluemeanie1 on May 26, 2014, 05:16:25 pm
yes, Moneypak is a very common method in the US for exchanging Bitcoins locally.

-bm
Title: Re: Asset Euro cash
Post by: 2Kool4Skewl on May 27, 2014, 07:32:43 am
your main problems are legal.

typically this sort of thing is highly regulated in the First World.

+1

Superresistant, I don't know if you are familiar with Ripple fiat gateways, but imo, I believe the laws (in US and Europe) would consider a fiat IOU to be fiat equivalent and therefore subject to MSB regulations and licensing.

I'd like to see NXT have a bunch of fiat gateways, but not at the expense of putting their operators in legal jeopardy.  I urge everyone thinking of opening a gateway to do their research and consult with an attorney before doing it.
Title: Re: Asset Euro cash
Post by: SwissAlps on May 27, 2014, 01:51:45 pm
You can also have a look in Wikipedia, "Fractional reserve banking"
Your proposed AE is very similar to what a bank must do to satisfy it's customers...
Title: Re: Asset Euro cash
Post by: SwissAlps on June 13, 2014, 05:07:27 am
Following the discussion we where having in the french forum, here are a few points :

To present another possible way that we started to discuss in the french forum, I start a new thread in the GeneralDiscussion forum...
Title: Re: Asset Euro cash
Post by: SwissAlps on June 13, 2014, 05:37:52 am
Here, the new topic :

https://nxtforum.org/general-discussion/cash-to-nxt-and-nxt-to-cash-using-reputation-system/
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