Could you launch your own credit card and issue loans backed by bitcoin? That’s the gist of this startup idea. How do you do it? First task is to launch a bitcoin exchange. This exchange ultimately has settled and deposited funds that have not been withdrawn that could be used to issue Fiat loans. In this case, to operate a credit card backed by Bitcoin, but where you are paying retailers with the settled FIAT funds. The bitcoin piece is really just a side part of this that allows anyone that can launch of a bitcoin exchange to operate its own credit card and loan processing service. That means anyone can kick the teeth in of Big Banks!

It’s an interesting idea, because many of the issues talked about with Bitcoin are the delays in ledger, how it’s a poor currency for fast transactions, and how expensive it is to process transactions. If you collected the usually credit card interest fee and used that to cover btc transaction fees, you’ve suddenly wiped out the appearance that transactions are expensive. The exchange also remains transparent to bitcoin price fluctuations, because it’s not operating on btc but Fiat. The BTC is merely there to perform the exchange function and establish the “bank”. You are issuing community backed loans, without the community being a knowingly involved party, similar to a standard bank.