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Probably related to Bakkt. The interesting thing here is how inexpensive was the transaction fee. How does banks transfer this kind of sum and how much would it
by ulzeraj 7y ago
Probably related to Bakkt. The interesting thing here is how inexpensive was the transaction fee. How does banks transfer this kind of sum and how much would it cost?
- foota 7y agoI would imagine it's free? Probably not free in terms of bureaucratic overhead, but I would imagine most the overhead applies here as well.
- jedberg 7y agoIt would be free with a bank. If you have that much money with the bank, they will bend over backwards for you. For example with E*Trade I think any wire is free if you have 1 million with them.
- magashna 7y agoCould you actually transfer 1B in one transaction?
- hbosch 7y agoWhy not? Are you implying that it would technically break some sort of system or something like that? If I legally own a billion dollars in a Swiss bank, and I want to move it to a Cayman Islands bank, there is certainly a room full of well-paid men in fancy suits that will gladly accommodate that. Or, perhaps more similar to the topic, if I wanted to move a billion dollars from one UBS account to a new UBS account, I certainly could. Some special guy would probably have to turn the key for me, but if I have a billion dollars in a UBS account I surely know that man by name. And also, I would have the benefit of doing it privately, unlike with Bitcoin.
- magashna 7y agoNot technical obstacles, more like regulatory or legal obstacles. I imagine there is a lot of paperwork and legwork involved in moving 1B fiat
- deleted 7y ago[deleted]
- envy2 7y agoNot really. Over a certain amount, for fully-convertible currencies, the process basically looks the same for any sum.
- PeterisP 7y agoI've seen a EUR 1B+ transfer (a transfer from the central gov't tax office to a major municipality with "their share" of income tax constituting a major part of their budget) being executed in the backend, it was really nothing special execution-wise. After all it's all just numbers in a ledger about who owes whom what - just this number was slightly longer than usual. It would require an extra pair of eyes compared to a 1M payment (which are very common), but that's not a significant difference in process, just one more employee would have it in their queue for approval and it wouldn't even increase the time as it'd jump to the front of the queue of payments that need some oversight. It could involve some extra notification as $1B leaving or arriving is meaningful enough to impact your liquidity and reserve requirements and thus your trading desk might need to borrow/lend some cash. I'd assume that a major bank might have $1B+ payments quite often - I mean, the T-bond market alone is $500B daily and probably some of the individual trades are larger than $1B; then every delivery of a $1B+ industrial project is probably accompanied by a similar bulk payment and the projects across all the industries add up.
- gumby 7y agoThey used to pass physical currency around. The US mint produced high denomination notes — up to $100,000 — for this purpose (no they weren’t because of inflation, like in Weimar Germany or Zimbabwe)
- jonknee 7y agoIt would be free if done through a bank and you could actually get a lot of free steaks out of it. Once you have a little bit of money banks start treating you well, when you have a lot of bit of money they treat you really well.
- CrazyStat 7y agoI had a casual acquaintance who had a few hundred million dollars managed by a large US bank. His son--who only had single-digit millions--wanted to buy a house, so the dad talked to the bank and they arranged a zero-interest mortgage for him. They were happy to pass on what they might have earned from the mortgage interest (a few hundred thousand dollars, I'd guess) to make this guy a happy client.
- Rebelgecko 7y agoThe transaction fee actually seems kinda high to me. How much does a wire transfer cost, $35?