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March 09, 2016, 01:19:41 PM |
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There's a system called Continuous Linked Settlement, operated by the Continuous Linked Settlement Bank under (I think) the Bank of International Settlements. This is essentially a central bank for central banks, where the worlds top 50 or banks including central banks, maintain balances in the worlds top 10 currencies for international settlements. This is how the majority of international FX trades are settled. The rest are settled bilaterally through direct vostro and nostro accounts (latin for yours and mine) between correspondent and respondent banks. The cost and complexity isn't actually related to the underlying medium of exchange (fiat balances kept in core banking systems), transfer of value (payment systems) or the network (SWIFT) but in the integration across all the channel, product, trading, treasury, risk, processing, compliance, fraud, reporting etc systems within a bank and out to customers. Also banks generally have entirely separate systems in each country, and each country generally has a regime of compliance completely different to each other. Reducing complexity, cost, risk and increasing standardisation and automation is the key yes: but this is a massive job and not as straight forward as just adding a cryptocurrency based settlement layer. Payment services need to reduce friction not increase it, so you need to provide a better service than paypal, not a much worse system, in order to compete. Finally, as an architect of core banking and payment systems for many years I can tell you first hand that commercial and central banking systems are vastly superior in cost and speed to any massively distributed consensus based public cryptocurrency system that can ever be.
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