Re: NYC Web Payments BoF (September 22nd, 2013)

RE: "the buzzwords"

I reckon the jargon would likely be more associated with "OTC Currency
Forward Contracts".
http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/currency-forward-contracts.asp

BTW, On the jargon point, note the differences between Forward and
Futures Contracts:
http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/futures-versus-forwards.asp

The orientation in this BoF is mainly the pragmatic protection of
buyers and sellers in markets for tangible goods and services. It is
understood that the topic has direct relevance for investment per se,
for pure forex speculation, as well as for monetary economics geeks.
Those discussions are certainly welcome, of course.

In trade across different currency zones, any transaction can be
denominated in the seller's usual currency, the buyer's usual
currency, or some mutually agreed "vehicle currency". For the vast
majority of buyers and sellers of goods and services, fancy
multi-currency hedging methods are difficult to understand and to
choose amongst, and most of these methods involve significant
transaction costs both in terms of cash outlay, and manager
time/effort. Besides, they are heavily influenced by external parties,
which during currency wars... (ahem, I mean: periods of currency
turbulence) can unpredictably blow away the profit margin of a vendor,
or the savings margin of a savvy comparative shopper.

For regular buyers and seller using a web payments service located out
there "in the cloud", simpler and more cost effective management of
currency risk might be obtained if the parties could jointly exercise
freedom in their choice of vehicle currency, which indirectly
constitutes free choice of an exchange rate algorithm upon which to
anchor the price(s) expressed in their purchase order.

RE: "Most likely the merchant selling goods doesn’t want to deal with..."

The initial notice on this list provided a Bitcoin scenario. The
current version here
https://payswarm.com/events/2013/nyc-web-payments-bof includes a
scenario involving trade across different central bank currency zones.

I reckon the restaurant will be quiet until we get there :-)    Well,
at least it won't be a sports bar during an NFL game.

-- 
Joseph Potvin
Operations Manager | Gestionnaire des opérations
The Opman Company | La compagnie Opman
http://www.projectmanagementhotel.com/projects/opman-portfolio
jpotvin@opman.ca
Mobile: 819-593-5983
LinkedIn (Google short URL): http://goo.gl/Ssp56

On Sun, Sep 8, 2013 at 8:22 AM,  <eanders@pobox.com> wrote:
> In the past friends and I have discussed this briefly.
>
> http://en.wikipedia.org/wiki/Binary_option
>
> Is the buzzwords you are looking for.  Forex + Binary Options.  Binary
> Options have a very short expire time.  Many youtube videos you can watch
> about this.
>
> Most likely the merchant selling goods doesn’t want to deal with bitcoins.
> Merchant only wants fiat.  Merchant doesn’t really accept virtual currencies
> (V$), the Payment processor of their does.
>
> The operator of the payment system absorbs all risk for the fluctuating V$
> values.  They can use a % fee and absorb the risk themselves or they
> purchase binary options, through a forex broker, for larger transactions.
>
> I can make it to NYU or dinner September 22nd. Quiet restaurant and
> conversations are contradictory terms.  :)
>
> On 2013-09-07 21:48, Manu Sporny wrote:
>>
>> https://payswarm.com/events/2013/nyc-web-payments-bof
>>
>> -----------------------------------------------------------------
>> Topic: Web Payments and Enabling Price Stability
>>
>> Who: Web Payments innovators, Bitcoiners, Ripplers, and Economists
>> When: 6:30 pm on Sunday, September 22nd 2013
>> Where: New York City (NYU or a quiet restaurant around NYU)
>> Organizers: Joseph Potvin, Manu Sporny
>>
>> Problem: Jane wants to accept Bitcoins as payment for the vegetables
>> that she grows on her farm as part of a community-supported agriculture
>> program. She is concerned that the worth of a Bitcoin will change so
>> drastically that by the time she receives the Bitcoins that they will
>> have halved in value and she will be unable to afford to run her farm. A
>> new economic tool is needed to ensure the price stability of a Bitcoin
>> so that she can accept Bitcoins for long-term contracts without fear of
>> their devaluation over time.
>>
>> How do we create an open payment standard for the Web that permits the
>> stable interpretation of prices for tangible goods and services in
>> various currencies? Can we come up with ways to offer price stability
>> for contracts that involve deferred payments, even when currency
>> exchange rates fluctuate constantly in the speculative foreign currency
>> exchange market? Can we come up with ways to express stable value with
>> decentralized virtual currencies such as Bitcoin and Ripple in spite of
>> broader currency system turbulence? Join us to learn about, discuss, and
>> explore new ways of approaching the challenges and opportunities of open
>> funding and open payment protocols on the Web.
>>
>> RSVP if you plan to come.
>>
>> This is part of a Web Payments tour through NYC. We will also be at:
>>
>> http://edgeconf.com/2013-nyc/ on September 23rd
>>
>> and at the Financial Times (let me know if you want to attend that Web
>> Payments talk (on behalf of your financial/publishing institution)) on
>> September 24th.
>>
>> -- manu
>
>
>

Received on Sunday, 8 September 2013 13:47:02 UTC