> Why do you think, say USD IOU issued by gateway A will always be in par with USD IOU issued by gateway B?
They might not be. there can easily be an exchange rate between them in the distributed exchange.
So I can't transfer 10 ripple USD issued by gateway A to a merchant that is pricing their products in ripple USD issued by gateway B without exchanging them first? That will lead to doubling the fees for every transfer. 1 XRP for the exchange and 1 XRP for the actual transfer?
If there are 1 million gateways issuing ripple USD how many currency pairs will we have in ripple USD being both base and counter currency? There are also euros, pounds, yen, franks etc. This will be speculator's heaven and a price chaos?!