Topic: Distributed BTC/USD exchange using regular chip-and-pin credit cards - page 2. (Read 2625 times)

I know but we need hardware for that, and there is security issues. Also you can not able to manipulate smartcard for temporary pin code, AFAIK its encrypted. Short story it is not usefull for everyone.

// sorry for my bad english.

Care to elaborate? You see no value in being able to immediately get cash for your Bitcoins at any ATM (without waiting for weeks to withdraw from the exchange)? Or buying Bitcoins with your credit card with no minimums or restrictions from a remote user? Or the fact that all of the above happens in a distributed fashion, directly between seller and buyer, with no central authority and no transaction logs?

Interesting, but not usefull.

Hello everyone,

I was trying to figure out how we could create a truly decentralized BTC to USD (or any other currency) exchange, without requiring physical proximity or wire transfers and still make it as good as a BTC to cash exchange (no chargeback, etc).

So here's what I came up with: what if, in exchange for a certain amount in BTC, I am able to allow another Bitcoin users to remotely use my chip-and-pin card to buy goods (or withdraw money from an ATM) possibly half-way across the world? I would have a tiny smartcard reader at home and software running on my computer that relays requests from a remote ATM or POS to the credit card inserted into the reader. It is actually possible to screen the transaction before it hits the smartcard chip and even assign a one-time-use PIN to the remote user.

The remote user would need an emulated smartcard that actually relays requests to/from the actual card sitting in a reader somewhere. Initially this would be connected to some computer or phone via cable, at a later time it could simply be something like the Coin (https://onlycoin.com/), talking to your phone over Bluetooth.

This could also be made considerably easier if the ATM or POS support NFC transactions (believe it or not, ATMs in Europe have started to offer this option - you no longer insert the card but only touch the ATM (not POS!) with the card). Then the person who wants to withdraw the cash could simply use his phone to emulate a card (Android 4.4 KitKat for instance has native software NFC card emulation) and tunnel the requests to the real card where the card owner screens the transaction and approves/denies it.

The beauty of this is that in the end, one party gets Bitcoins and the other one gets cash from the ATM. Just like in a face-to-face transaction, but possibly from different corners of the world, to/from people that have never met before.

Would you be interested in this? I have prototyped part of it (the tunneling of requests to/from a real card and using NFC at the other end to emulate it to a POS or ATM), the transaction screening part is not done yet. The plan is to make this part of OtherCoin (https://bitcointalksearch.org/topic/off-chain-anonymous-transactions-by-secure-transfer-of-private-keys-321085), my off-chain Bitcoin payment system, but I have the feeling that this could be interesting outside my system as well.

Let me know what you think.
Razvan