Converting USD (cash) to BTC and back to USD, anonymously?

[JD6169]

   I've scanned the Bitcoin forums and cannot find an efficient/simple way of converting USD (Cash) to BTC and back to USD (Cash) while maintaining anonymity. Here's the scenario...

  Subject A and B don't know each other.

  Subject A receives services, for which payment is required

  Subject A then converts payment (USD) to BTC

  Subject A sends BTC to Subject B's BTC Wallet Address

  Subject B converts BTC to USD (Cash)

  Transaction complete.


    Can anyone explain to me how to accomplish the above, in an efficient and anonymous manner?

    Many Thanks.     

[helio]

I've been thinking about this quite a bit as it is the key to an underground bitcoin economy.  So many things can't be purchased with bitcoin. 

There isn't a very good answer as of yet except finding someone in person for an exchange. 
We really need unofficial bitcoin dealers and money changers. 

[DROI]

BTC and cash could be traded through the mail, although that's not too anonymous.

[Seth King]

It's possible but requires a little bit of patience to figure out and go through all of the steps. You may be very willing to go through the steps, but the other person might not.

First thing you'll need to do is install some sort of IRC chat software. I use XChat IRC, but there are gazillions out there. Then under the FreeNode network add #bitcoin-otc-foyer and #bitcoin-otc channels.

Then follow all of the directions here: http://wiki.bitcoin-otc.com/wiki/GPG_authentication

Then give a shout out in the forum that you want to buy(or sell) some BTC. Somebody, perhaps several, will contact you. Ask them if you can contact them via encrypted email. If they say yes then you can exchange mailing addresses, bitcoin address, and discuss exchange rate, etc.

Do the trade. After all is received well update the person's OTC rating and you're done. Yeah, pretty brutal but it's the price of anonymity.