CNET founder Halsey Minor has announced the launch of Bitreserve, a new low-cost payments platform for both Bitcoin and fiat currency.
Still in beta, this platform will provide real-time transparency while addressing other key aspects like transaction traceability, proof of solvency, and especially Bitcoin volatility.
“Bitcoin is a remarkable innovation, created and supported by lots of very smart people,” said Minor in a press conference. “Bitreserve is built on top of the Bitcoin network, allowing members to convert bitcoin into money they know, trust, and understand.”
The Bitreserve system, which aims to be the solution to the central issue of varying Bitcoin price values, will enable its members to hold this virtual currency and have it denominated as traditional currencies, including US dollars, pounds, euros, yuan, and yen.
These will, then, be called ‘bitcurrencies.’
This platform will provide registered members to own Currency Cards—wallets specific for each bitcurrency—aside from the BTC wallet in order for them to exchange value.
However, one of the main factors that make Bitreserve different from the usual Bitcoin exchange online is its ability to offer transparency.
“Our system is designed for a post-trust world,” Minor said. “Just like the Bitcoin network, everything is out in the open, traceable, and continuously updated.”
To achieve this, Bitreserve will regularly publish its company obligations to members and will maintain an update-to-date status of assets held in reserve.
According to Tim Parsa, executive chairman of Bitreserve, people have the right to know the actions the company takes with regard to their hard-earned money; therefore, this new system will ensure transparency and promote trustworthiness to prevent another Mt. Gox fiasco.
Through this system, members will experience a significant increase in the processing time of all transactions, which average about 10 seconds. This is made possible because Bitreserve processes these internally, not only reducing time, but also allowing for low-cost Bitcoin transactions.
Although the service is currently in invitation-only private beta, Minor has demonstrated how merchants, consumers, and average Bitcoin users will benefit from Bitreserve, highlighting zero costs as well as convenient and reliable transactions.
Once its services are open to the general public, Bitreserve members will experience an innovative way of exchanging currencies in the network, which are expected to immensely benefit users in various industries, including Bitcoin Forex and binary options trading, retail, and even Bitcoin online gambling among others.