7 ms·
Actually, I can Venmo or Paypal people instantly, not in 3 days... and everyone I would want to send money to (people I know IRL in my country, or businesses wo
by galdosdi 4y ago
Actually, I can Venmo or Paypal people instantly, not in 3 days... and everyone I would want to send money to (people I know IRL in my country, or businesses worldwide who are legally able to sell to me in my country) is able to use it.
You make a fair point in theory, but this kind of superficial thinking is what crypto shills count on (no offense, I see this kind of argument a lot).
Here's the difference: With crypto, that speed comes at a huge and disturbing cost-- the inability to reverse a fraudulent transaction and appeal to the court system to fix other misunderstandings. Sorry, but it turns out that's essential to everyday business, not "silly" friction. There have been many cases demonstrating this by now, not to mention the huge enablement of ransomware, etc.
Crypto is never going to be able to solve that problem because if they do, they stop being crypto, by definition. The friction exists for legal and regulatory reasons. If the legal regime wants to make instant transfers possible, well they can, which is why you can now Venmo or PayPal people instantly. With the right treaties and such, it would be possible internationally too. The technology is there, but the political will isn't.
Crypto gets around needing that, which seems nice, but the cost is too great for anyone but hobbyists, criminals, and speculators. It's no different from a car company being able to undercut all other manufacturers by not including seat belts, air bags, or brakes. Cool proof of concept, but of limited utility except for niche applications like NASCAR.
If I actually need to send money to my friend in Germany, I will use Western Union (or whatever the modern cheaper quicker equivalent is -- a lot of movement in this space lately!). It will be same day, it will cost a small fee, and the small fee will probably be worth it to avoid the risk of scam, theft, and crypto volatility.