Half a croissant, on a plate, with a sign in front of it saying '50c'
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p2p foreign currency exchange

Swapping holiday currency via p2p network
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(+3, -1)
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A p2p website where people can advertise either their requirement for currency, or their surplus foreign currency. All transactions done at some mid-rate, so everyone gets a good deal, and only the banks with their rip-off rates loose out. Transaction works much same as Ebay, although probably the person wanting the currency pays a listing fee, only if the order is fullfilled.

Note that in the UK currency posted up to £2,500 is insured. Would probably be limited to matching customers within same country only.

Haven't found this searching the web, but not sure why not.

Bobble, Apr 22 2004

(?) money twins , p2p currency exchange http://www.moneytwins.com/
[fokoob, Jul 22 2006]

currency fair http://www.currencyfair.com/
seems baked [neilp, Aug 09 2010]


       not much of a traveller but this makes sense...
po, Apr 22 2004

       Why not just use ebay?
jutta, Apr 22 2004

       [jutta] I think Ebay is not quite tailored for this type of transaction. There are money laundering implications with cash movements which I think would require a more specialised approach that Ebay.   

       Also, since punters can always sell their cash back to the bank, albeit at a bad rate, a site which charges a fee whether or not the goods are sold is not going to go down too well.
Bobble, Apr 22 2004

       Swapping currency- sounds like the world market.   

       There is a price for currency determined by market forces. Banks chrage for the service, some more some less. It involves cost for them.   

       I don't see how your system would reduce the costs involved in transferring money. It would only reduce the economy of scale, which always saves money?   

       Just get money out at an ATM and get the exchange rate at the time you take it out. Or use a credit card. Or sell / buy the currency from a reputable broker.
xylene, Apr 22 2004

       I think I can tell you why not: there is considerable market and delivery risk involved in trading foreign currency, even at the interbank level. At the peer-to-peer level, there are additional risks such as the validation of unfamiliar currencies - how do you know you are not being given a forgery? (This can be difficult to tell even with familiar currencies.) And governments are constantly retiring currency - how do you know that the bag of bills being given to you is still legal tender?   

       Both these aspects are used by criminals in common scams; putting it on eBay (or some equivalent) would just make their lives that much easier.   

       And then, of course, we get into money laundering. You really don't want to go there.   

       (Btw, somewhere at the height of the dot-com bubble, some former colleagues showed me their Internet company, which was geared to letting the likes of you and me trade in the Interbank Spot FX market, which is highly liquid but almost completely unregulated. The whole thing looked iffy: they were offering margins of 50:1 - much the same as those in the Futures market, but without any of the controls or protections. A couple of months ago, they got their pictures in the paper as they were hauled off to jail for breaking a whole bunch of investor-protection laws.)
DrCurry, Apr 22 2004

       [xylene] The reduction in cost is for the individual, since they achieve the mid rate, not the buy or sell rate. The only other costs involved are the postage of currency and the listing fee. If you get currency out at ATM then you are given a very poor rate by the bank. Remember theres not just one exchange rate, it all depends on whether you're a buyer or seller. Think you're missing the point.   

       [DrCurry] Yes delivery risk is there, but also present for Ebay, who appear to make the system work. Re: money laundering, am familiar with regulations, which is why a specialised site is required to identify both sides, sufficiently, depending on transaction size. Western Union for instance, needs no ID up to £600, 1 ID form up to £2000 and 2 ids over £2000. The validation of unfamiliar currencies is just the same as validation of any goods bought second hand, via Ebay or the like.
Bobble, Apr 22 2004

       //Why not just use ebay?// Should work nicely. PayPal could handle the exchange since it is already available in most countries.
kbecker, Apr 22 2004

       My bank requires $300 in 'international' currency to do a transaction into $US; it's not really inequitable, but many people overestimate what they're carrying.
dpsyplc, Apr 22 2004

       Looks like there has been some progress on that topic. I have heard of a website in the UK that allows companies to match their foreign currency needs. Another one, mentionned in the link (www.moneytwins.com) allows people to find other people in order to exchange currency. Of course there needs to be a strong trust in the counterparty and that relies mainly on building up a community of users giving feed back about other users. That could be also used by groups of people who naturally trust each other:work colleagues, etc...
fokoob, Jul 22 2006

       Im thinking of a different thing using currencies of other nations to create shared value on large items   

       basically Fords margin per vehicle was near .02 yet a currency speculator averages .07; GMAC vaugely like the GM "loan arranger" had more than 20 billion revenue, a pt of that is 200 million   

       its pretty plausible to shift a pt at the person side   

       there are variations: girl scout: share the difference   

       person gets car, dp is converted to favored currency, after a year person is given wonderful opportunity to use some of the appreciated difference on fuel or repair (referral$) or even amount remaining on car; they must be willing to adjust if currency goes a way different than predicted yet the entity they got the car from is permitted to demand value; note the entity makes more if they predict currency direction accurately   

       there are numerous variations like "complimentary" trickoutthevehicle goodies based on the predicted currency change or complimentary labor or parts   

       anyway I think fbi agents as well as those out to make more money from the automotive group now have a feeling for the opportunities or risks that go with this idea
Treon, Apr 07 2008


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