Bitcoin startup Bitreserve is now offering a free service allowing users to convert bitcoin into fiat currencies or precious metals, while evading the high fees charged by traditional financial services institutions for currency conversion. Bitreserve was founded in 2014 by Halsey Minor, co-founder of CNET and Salesforce.com, and has since been responsible for about $14.5 million in asset transfers worldwide. Users were initially charged a 0.45 percent commission when converting bitcoin to dollars, but has since made its services free in an attempt to increase its market share.
If you look at a Mexican immigrants, they send approximately $30 billion home every year and they pay just under $3 billion for the privilege of sending that money home,”
said Bitreserve’s president and chief operating officer, Anthony Watson.
One potential hang-up for consumers is that Bitreserve requires users to own bitcoin prior to using the service. This means that if one wanted to convert dollars to yuan, for example, one would first have to convert the dollars to bitcoin, then convert the bitcoin to yuan. When a user receives money, it can only be spent in bitcoin. Despite these limitations, the service is the first of its kind in the diverse and rapidly-growing digital currency industry.
Read more here – “Bitcoin Start-Up Has Made Exchanging Currencies Free,” (Arjun Karpal, CNBC).