[rowyaboat]

One of the things I'm really looking forward to is USD/EUR denominated sidechain assets eg. https://tether.to

At present, arbitrage between different exchanges is easy if you are moving bitcoins, but moving USD is very time consuming and requires all sorts of verification. When the exchanges start accepting certain dollar denominated crypto assets you will be able to move USD between exchanges as easily as moving bitcoins. Liquidity and market efficiency and prices will all become extremely similar across markets. Any bad exchange will rapidly be shown up as a fraud as they will collapse within hours as any price differences or manipulation will be attacked by speculators. If anyone stops paying out deposits they will be called out within hours (vs. months and months when mtgox stopped paying out USD) and will rapidly lose credibility and collapse.

[pakled_engineer]

I once looked into a pegged side chain type coin to make trading easier and it's impossible to do with certain currencies, especially USD. You become responsible for all trades with your token/coins, so if you sell 20,000 USDcoins to user A and they sell the coins to User B without following KYC/money laundering rules the feds come after you demanding ID for User B.

Same goes for CADcoin or GBPcoin, maybe EURcoin would be different but unlikely. You would have to set it up as a centralized service where all transactions req proven identity paper trail which in the end is just as cumbersome as using regular banks.

There's tons of other regulations like preventing your USDcoin from being used for online gambling, which is why Paysafecard must sell crippled PINs in US.