Exchange Bitcoins Inc., or ExchB, has made its current claim to fame by being the first United States-based Bitcoin exchange. Headquartered in Redwood City, California was founded in May 2011 by David Sterry and offers a wide variety of services designed to inspire confidence in its stability and capabilities. In fact, their press materials suggest that the company is pending registration as a currency exchange business with the US Department of Treasury.
Recently, ExchB announced a new “cash deposit” service that would allow their customers to go to any Chase or Wells Fargo bank and provide cash directly for bitcoins. The service boasts 15,000 locations nationwide—presumably the aggregate of both Chase and Wells Fargo bank locations—and would only require that a customer go to a branch, deposit the cash into the ExchB account with the bank, and then e-mail a scan of the receipt.
Alongside their new instant cash and overnight deposit method, ExchB is offering exchange for US Money Order and check deposits via mail. They also have started free check withdrawals, and ACH withdrawals (direct from bank account payments, with a 2-3 typical day turnaround time.)
With some of the recent troubles that have hit the Bitcoin market—such as the bubble that dropped prices from $13 to nearly $7 and the massive loss of bitcoins when Bitomat.pl lost their wallet—has seemed to rock confidence in exchanges in general. The market has managed to stabilize itself again over the past seven days; but in order to keep trucking, exchanges and e-wallets will have to show more than just easy exchange mechanisms. ExchB includes statements as to having corporate status and a legal team and the addition of these services may be a bid to attract further customers.
All these moves, taken along with MtGox’s acquisition of Bitomat.pl, ExchB may be able to provide an easy exchange for US citizens interested in getting into the Bitcoin market and increase overall confidence in the market itself. With a greater volume of players trading and holding bitcoins, it should reduce the overall volatility.
But the cryptocurrency still has a long way to go yet before it receives a broad enough acceptance to be safe from deep gouges such as happened with the recent exchange and e-wallet losses.