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[2014-10-23] CNET Founder Readies Bitreserve Launch in Bid to Quell Bitcoin Vola
by
lanboor
on 23/10/2014, 06:12:05 UTC
http://blogs.wsj.com/moneybeat/2014/10/22/cnet-founder-readies-bitreserve-launch-in-bid-to-quell-bitcoin-volatility/

Bitreserve has a few features differentiating it from other digital-currency wallet services. It taps the efficiency and low-transaction costs of bitcoin, but also promises to lock in users’ bitcoin deposits at fixed exchange rates. The service does not allow actual exchanges of bitcoin against fiat currencies but rather promises to absorb and manage the risk of bitcoin losing value against them by maintaining and publicly displaying an asset reserve covering 100% of its clients’ dollar- and other currency-denominated deposits. The goal is to overcome the extreme price volatility that has been the digital currency’s primary deterrent for mainstream users and thus provide them with a service for cheap, reliable money transfers.