Dwolla Launches
Dwolla launches its payment network, which would soon become the primary funding rail for Mt. Gox and the US Bitcoin market.
On December 1, 2010, Dwolla officially launched its online payment network. Founded by Ben Milne, Dwolla was designed to bypass credit card networks (and their 3% fees) by connecting directly to bank accounts for a flat fee of $0.25 per transaction. While not a cryptocurrency company, Dwolla played a critical, accidental role in Bitcoin history.
Because traditional banks and PayPal were hostile to Bitcoin exchanges (often freezing their accounts due to risk), early exchanges like Mt. Gox and TradeHill integrated Dwolla as their primary method for US users to deposit and withdraw fiat currency. For a period in 2011-2012, the "Mt. Gox <-> Dwolla" pipeline was the main artery of capital into the crypto ecosystem.
This relationship eventually soured under regulatory pressure (DHS seizures in 2013), but in late 2010, Dwolla's launch provided the low-cost, permissive financial rail that Bitcoin needed to grow. Dwolla provided the critical fiat-gateway infrastructure that allowed US investors to move money into Bitcoin exchanges during the early adoption phase, effectively subsidizing the network's liquidity.
Key Sources:
• TechCrunch: Dwolla Launches (Dec 1, 2010)
• The Verge: The Dwolla-Mt.Gox Connection
• Dwolla History