Ease of financial transactions and financial services in general, initially had a revolution when the telegraph companies introduced transfers. But with the advent of new financial services such as Bitcoin and Ripple age, it is time that we address the question of what the future holds for financial services in the world.
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Traditional wire transfers
Let’s start with a look at how things have been for the last 150 years, since the transfers were introduced. transfer of funds from a transfer method using a bank is not a process to a single step, but a process in several stages. It is as follows: The sender approaches its bank and recommends the transfer of funds to an account. unique codes such as BIC and IBAN to the bank by the sender, so the bank knows exactly where the funds should be transferred. Contacts of the Bank to the sender to send the bank the recipient of a message by a security system, such as Fedwire or SWIFT, indicating that a change must be made. The recipient’s bank receives the message, which also includes settlement instructions, then the bank requires the sender to the amount indicated in the message. The Bank of the sender now brings the amount. This does not happen all at once, but gradually, so it can vary from a transfer of several hours to several days for the full amount. To make the transfer, the two banks must have a reciprocal account with each other. If this is the case, the transition is done through a correspondent bank that holds such an account.
As we can see, this type of transfer is based excessively on a mediator, it takes longer than expected and can be costly as some banks charge fees for their services. currencies like Bitcoin distributed offer a viable alternative to this process.
What makes services such as Bitcoin, outside traditional services is that they do not rely on a central mediator, but operate using cryptographic protocols. The process is faster, easier and much more effective. The system is very transparent to end users and while traditional systems are susceptible to fraud in question because of the complex process.
However, there is a drawback to this. With services such as Bitcoin, it is easy to back a transaction to create each unit value of spores.
Solution? A Common Ground
Always by simply sending a SMS more people are opting for services such as Bitcoin transfers and mobile peer-to-peer, where a network operator could help users transfer funds. Although this is much more effective, they are far from acceptance around the world because there are many people who still do not have bank accounts, the more the problem of user identification limited such services.
What would be ideal is for everyone if banks could benefit from the capabilities of the local currency and overlapping sources of services such as Ripple on their existing system to a hybrid of the two forms. It would kill two birds with one stone: local money systems more efficient transfers Banking systems ensure that only registered users can access the service, which eliminates the possibility of a fault.
The world has come a long way since the last time an indigenous financial services system was introduced again. It is sure to improve a crying need for the traditional service and decentralized currencies like Bitcoin have shown them the way.