How Banks Can Lose $60 Billion to Cybercash Highways

This inefficient system of correspondent banking will become redundant if your bank simply takes $100 from your account, converts it into your home country’s tokens, and cryptographically transfers them across the borders where they show up as $100 worth of digital cash in that nation’s currency. In the background, the sender bank’s account with its monetary authority is debited; the recipient bank’s account, with a different central bank, gets credited. A single distributed ledger, capable of handling multiple currencies, settles the claims. Model 3 comes with inbuilt checks on money-laundering and a dedicated set of players jostling to offer foreign-exchange services at the best price.

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