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This is obvious... once you establish trust from Bank A to Bank B (and correspondingly Bitcoin account A and B), you can transfer the money very quickly with 10
by speedplane 8y ago
This is obvious... once you establish trust from Bank A to Bank B (and correspondingly Bitcoin account A and B), you can transfer the money very quickly with 100% assurance it was transferred to A and B.
The older way of doing this would be based on expensive contracts, legal regulation, and potentially intermediaries, who will happily take their own cut.
- joosters 8y agoThe only intermediaries being added are the bitcoin exchanges. The loan originator has to initiate a bank transfer from their account into bitcoin exchange 1, and from bitcoin exchange 2 into the customer's account. That's now two 'legacy banking transfers' instead of the normal 1. More intermediaries, more transfers, more costs (and more risk of money loss unless there is a similar amount of regulation & contracts in both cases).
- speedplane 8y agoNot quite right. The old way of doing it actually worked like this: Bank A in country X transfers money mega-bank B in country X. Mega-bank B transfers money to mega-bank C in country Y. Mega-bank C in country Y then transfers it regional bank D in country Y. Bitcoin will allow smaller banks to transfer money without the help of the giant banks who have built up relationships (and binding legal agreements) over the years. Honestly, even though some large banks bullish on bitcoin, the real benefit will accrue to the smaller institutions.