step 1: Create A Reserve

step 2: Create Some Marketing Material

step 3: Issue The Asset

step 4: Market the Asset

step 5: Offer Redemption Services

step 6: Enjoy Your Success

here I'll explain how to get into the fiat exchange business in your town using the AE. I had made some comments about the Bitcoin ATM and how they are not as useful once you have a decentralized exchange and one commenter wasn't completely clear on why this is, so I'll explain here.NOTE: there are serious legal considerations with providing these sorts of services. In many nations, such as the United States of America(also known as The Land of the Free) and most parts of Europe this sort of activity is either partially or strictly illegal. Make sure you understand the legal consequences of starting your own local fiat exchange.First step is taking a bit a cash and making a reserve. Your eventual users will need to trust that you have this money in the bank because they will be honoring your Cryptonotes for real money. If the trust(or perception of) breaks down with the public ie. they don't believe that you can honor all outstanding notes, you will have a collapse in market price. So depending on how you do your banking, it's best to have some sort of service that can provide a document(like a bank statement) that can prove you have the money in the bank to correspond with your cryptonotes.Easiest way to do this is make a website that explains why your notes are credible, where/when they can be exchanged, where the money is stored, historical information(how long has the service been running), how many happy customers you have, etc. Also starting a forum or blog so your customers can communicate with you in a publicly auditable way can really help to instill confidence with your users.Next you must Issue the asset. The Asset Quantity should correspond to how much money is in your reserve(from step 1).Now you must offer the notes for sale. They must sell ABOVE the redemption value(in real terms) in order for your business to make sense. Thus it is your responsibility to make sure the assets are trading at a favorable rate. They may drop below profitable levels at first, but as you gain reputation they will float above the redemption value. The difference is called Seigniorage . If they drop too low, you may have to buy them back. You must, in all cases redeem them for their pre-defined cash out value or lose your credibility."Hello, Welcome to Meaniebank(tm). How can we help you today?"You must maintain a way for your customers to redeem the notes for real money. Depending on the needs of your market, you may offer this service at some place in your town, perhaps at a Bitcoin Meetup, or a NXT Meetup. As your bank becomes well known, the notes may be accepted in other geographical areas. You can even work out deals with friends in other town to offer redemption services in other areas(make sure you cut them into the profits). You should do this in a safe place where robberies and such are unlikely. Also dressing properly will help you instill confidence with your customers.You're a banker now like J.P. Morgan. Doesn't that feel great?-bm