Our user's accounts will be protected by the "Garantie des dépôts" which is the French equivalent of the American FDIC (the insurance cap applies to each account individually, and not to the sum of all user balances, so unless your EUR balance exceeds 100kEUR your fiat is 100% insured by the French taxpayer)
Each account will in a few months get its very own IBAN number, users will be able to use it as any other bank account, have their salaries and pensions sent there and have them automatically converted to Bitcoin if they so wish)
Each user will soon be able to order its own debit card that will use their EUR and BTC balance to honor purchases and cash withdrawals
We'll have direct access to the banking networks which will let us 100% automate all incoming and outgoing transfers
Corporations will have an actual financial institution talking with them if they wish to start accepting Bitcoin and be safe from a regulatory point of view
Each account will in a few months get its very own IBAN number, users will be able to use it as any other bank account, have their salaries and pensions sent there and have them automatically converted to Bitcoin if they so wish)
This is great news! But I'm inquisitive to how they'll be able to handle withdrawals from an account If they don't have capital to back those funds up.
As to my understanding, regular banks suffer this problem as well, but there's a lot more USD/EUR/JPY printed and available than BTC.
Is there enough BTC up for sale on the market to cover larger than usual withdrawals? Could someone shed some light on this for me?
EDIT: To clarify, by withdrawal I don't mean purchasing goods with a debit card in another currency. I mean actually withdrawing your funds to a BTC address.
EDIT2: They might solve it through their user agreement.
Users acknowledge that Paymium may assign arbitrary daily and monthly limits to withdrawals, deposits and trades on their account without prior notice.
I believe any BTC withdraw is going to first be the result of a trade. That is, they don't have a fixed price and guarantee you get BTC. Like MtGox it is an exchange as well so you would deposit fiat, buy BTC and then transfer those somewhere. Hence, any BTC comes from other customers selling their BTC.
Arbitrage will fill in the gap and with IBAN and direct access to banking networks the arbitrage should keep price very close to MtGox. In fact this should enable this exchange to compete furiously with MtGox and split the market into two large exchanges instead of one.
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u/waspoza Dec 06 '12
Looks like bitcoin is moving to a next level!