Bitreserve Is A New Financial Service Built On Top Of Bitcoin

Bitreserve is a new fee free financial service that is built on top of bitcoin. Bitreserve was founded by Halsey Minor who created Salesforce.com and founded CNET. He hopes to supplement banks with a new financial platform that is faster, cheaper, and uses bitcoin to transmit value.

Bitreserve

Once you become a member of Bitreserve you fund your account with bitcoin. You can then avoid bitcoin volatility by holding your bitcoin in any of eight currencies and well as gold, silver, platinum and palladium. When you want to send money to someone you convert part of your holdings back to bitcoin.

You can then send bitcoin to anyone or spend wherever bitcoin is accepted. Or you could send bitcoin to one of the several bitcoin debit cards now available.

Bitreserve Apps

Bitreserve has four applications to make it more useful to members:

  1. Bitwage – an international wage and payment system
  2. LibertyX – lets you convert cash to bitcoin at local stores and send to Bitreserve or your own bitcoin wallet
  3. EasyMoney – send money to anyone, anywhere for free
  4. Changemoney.org – lets you visualize the Bitreserve network in realtime

How Does Bitreserve Make Money?

So how does Bitreserve make money if they do not charge transaction fees? They invest their own reserves in no risk instruments like US treasury bills and currency conversions are not free for non-verified members.

Members who are not verified are charged a commission for converting bitcoin to fiat and back and also to convert one currency to another. And everyone is charged a small fee for precious metal conversions. Here is a chart of the fees:

Bitreserve Fees

Where Is Bitreserve Available?

Bitreserve is not yet licensed as a money transmitter in the following US states and cannot accept users from:

  1. Alabama
  2. Delaware
  3. Florida
  4. Georgia
  5. Hawaii
  6. Idaho
  7. Kentucky
  8. Ohio
  9. Tennessee
  10. Virginia
  11. Washington
  12. Wisconsin
  13. Wyoming

They also cannot offer accounts to residents of the following countries:

  1. Central African Republic
  2. Cuba
  3. Iran
  4. Libya
  5. North Korea
  6. Somalia
  7. Sudan
  8. Syria

Transparency

You can view up to date Bitreserve Status at anytime. The company president Tim Parsa discusses company guarantees and transparency in the Reddit thread what guarantees do I have with Bitreserve?

Conclusions

Bitreserve has a bold vision of supplanting the traditional banking network using a platform built on top of bitcoin. It also hopes to act as a buffer reducing bitcoin price volatility.