Why bitcoin will inevitably be the backbone of international bank transfers very soon.

I posted this in another thread and a member said I should submit it as it's own thing because he found it interesting so here it is.

We just came back from being finalists at the BBVA fintech awards for what we are doing with Vaultoro.com, the BBVA are the second biggest bank in spain and the biggest in south america, they invested in coinbase.

One of the biggest problems they have is international transfers. Consumers are demanding cheaper and faster international transfers, but some small regional bank in India does not have agreements with a bank in Spain or the US. Banks around the world use a 6 degrees of separation type deal where they send the money to a bank that they have an agreement with, who takes a cut and forwards it on to another bank they have an agreement with, that sends to another bank that have an agreement with the final destination bank. They all take their time and a cut.

Bitcoin is mathematically extremely secure. Now if two banks officially transact and accept bitcoin for international transfers to happen (without the client having to know) a bank could buy bitcoin locally, send it around the world to the "untrusted bank" as it's a trustless network and that bank would sell the coins locally for fiat. Even with 6 confirmations it's way cheaper and faster.

In the beginning the bank could charge the client the same or a little less than everyone else for the service and pocket any win from not having to pay 3 intermediaries. It will happen. The old banking protocols are all based on trust and international contracts which are extremely costly to set up and keep track of. Banks will use bitcoin.

The talks I was having with executives all pointed to this eventuality.

We saw phone companies in the 90s do the same. When you made an international call it could connect through multiple companies that had contracts, the call would echo and cost an arm and a leg because to call USA to Australia you would actually be using the phone lines! Then one smart company said hey if we make a local call, convert to VOIP, send it to Germany and then make another local call then it will be far cheaper for us, quality will be better and bang you had a revolution in telephony.

Bitcoin is the trustless conduit and people won't even know they are using it.

Submitted October 03, 2015 at 09:37PM by Vaultoro http://bit.ly/1QQJESM