It is possible. Issue IOU in the form of colored coins. That is the very basis of banking!
Point taken, but are there any colored coins in use now that can be traded for fiat?
I believe they are two different classes. One is a service provider and the other is a user. Not sure what you mean here.
Banks aren't needed to store Cypto's, surly all that's left is credit, which I'm sure can be organized privately by individuals once contracts are attached to transactions/blockchains.
Federal regulating body - They are based in Germany. So, it is Germany, I guess.
Deutsche bank: fifteen shades of fraudOn a different note:
Good read, thanks.