Quote from: zero3112 on March 09, 2014, 08:30:06 PM

Would something similar to libertyreserve work for USD fiat where there are exchanges in between you that would exchange USD for a the libertyreserve currency that was pegged to the US dollar. Only difference would be to make it a crypto coin that is pegged to USD. The exchange then would issue 1 dollar in the crypto coin and sell it with a small fee. They would make money from the fees and the coins sold would be able to reclaim there cyrptocoins for the original dollar they paid. Of course you would need to pay $1.02 or something to get $1 of this crypto currency.

The advantage is there is no exchange to hack, the USD cryptocurrency is backed by real dollars that are stored safely in a bank account, the dollars have fdic insurance, since the funds are in a bank account they aren't easy to steal, since its a USD cryptocurrency it is transparent and clear how many coins are issued and if the company is solvent.

Sure you can release your own USDcoin just hope you don't end up like the admins of Liberty Reserve and arrested. The problem is users on the p2p exchange can trade between each other USDcoins without notifying the issuing entity and therefore not providing any KYC info. OKpay has a centralized server so everybody is identified and they can freeze transactions for more info, but USDcoin you'd only have to download a wallet and trade away with no identification. This would be epic awesome if we could do this but sadly governments won't allow it anywhere unless you have a bank account in Belarus or other financial embargo country

Colored coins are kind of like what you are describing, so is Open Transactions where you can release your own currencies. Won't ever happen unless you find a shady country that doesn't care about US and European pressure to shut it down. Gold could be a possibility because of different regulations, Pecunix is still around.