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A simple explanation of how money moves around the banking system (2013)

162 pointsby rndnabout 10 years ago

12 comments

rebelidealistabout 10 years ago
This is the problem that Stellar (<a href="https:&#x2F;&#x2F;stellar.org" rel="nofollow">https:&#x2F;&#x2F;stellar.org</a>) can solve better than Bitcoin. Unlike Bitcoin which takes 10-30 minutes to confirm transactions, Stellar takes seconds with its new consensus system (<a href="https:&#x2F;&#x2F;medium.com&#x2F;a-stellar-journey&#x2F;on-worldwide-consensus-359e9eb3e949" rel="nofollow">https:&#x2F;&#x2F;medium.com&#x2F;a-stellar-journey&#x2F;on-worldwide-consensus-...</a>). This eliminates the need for mining which consumes a exorbitant amount of electrical energy. Stellar is also built to work with a diverse set of currencies (USD, EUR, CNY, BTC etc).
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MichaelGGabout 10 years ago
&gt;First, we need to acknowledge that SWIFT is not cheap. If Barclays had to send a SWIFT message to HSBC every time you wanted to pay £10 to Charlie, you would soon notice some hefty charges on your statement.<p>Why is this so? Sure in decades past it might have been expensive to send so many messages, but today it should be easily accomplished with moderate hardware. Wikipedia says SWIFT did about 15M tx&#x2F;day in Sept 2010. That seems pretty miniscule as far as hardware load goes.
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andrewstellarabout 10 years ago
Great article on the global correspondent banking system.<p>For anyone interested in how US domestic payment systems work (checks, ACH, Visa&#x2F;Mastercard) check out Payment Systems in the US by Carol Benson. It is the bible.
bdammabout 10 years ago
Now that was one of the most eye-opening small articles I&#x27;ve read in a while. Many a times over the years have I been privy to a tiny glimpse here and there of the internal workings of the banks. This helped open the portal a little.
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TeMPOraLabout 10 years ago
I love the article. This is a kind of explaining that really works for me - building bottom-up, outlining the problems that are to be solved and the new ones a solution introduces. Thanks for posting it, rndn!
wcbeard10about 10 years ago
<a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=6793063" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=6793063</a>
ww520about 10 years ago
Learned something today. This is an informative piece on the behind the scene activities on fund transfer between banks. Very nice.
gaddersabout 10 years ago
I met Richard when I was working at a different bank. Nice chap.
photoniosabout 10 years ago
Awesome! A nice and rare view into how banks work internally.
zillyabout 10 years ago
Thanks for sharing, really interesting.
PebblesHDabout 10 years ago
Thats fascinating! nice find
cm2187about 10 years ago
Excellent article