Quote from: god.aur on May 08, 2016, 03:38:10 PM

Quote from: AlmondMilk on May 08, 2016, 01:12:41 PM

Businesses can have instant exchange model in place, so customer buys coffee for 300ISK with current equivalent 7 AUR then business processes payment instantly through exchange for 300ISK this ensures his profit & increases exchange volume. As more businesses accept & transact in AUR demand rises & supply becomes primary factor in price.

The key problem for merchants is market depth and price stability when they have revenues in AUR but costs in ISK. Going forward, there will be a role for a mediator (a factoring company of sorts) to provide a guaranteed and relatively stable exchange rate to merchants who don't want the risk or hassle of selling the AUR themselves.

The business model of the factoring company is of course to profit on the price difference. Clearing vis-a-vis merchants will be done off-market, possibly with the aid of private equity / dark pool investors, with AUR funds fed back into the market in a controlled manner to recover the ISK at a profit.

A final solution is of course to identify cases where merchants can have both their revenues and expenses in AUR. Low-hanging fruit for AUR business development are used-goods exchanges, companies with high-margin but non-core products and/or niche and novelty marketing needs especially if can pay part of their salaries in AUR.

Price stability will come. No doubt and that will come with all businesses in Iceland accepting AUR directly.