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How A World Makes Bank Money Transfer Without A Blockchain System?

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Many believe banks steal the money of ordinary citizens. But this isn't about politics or whether banks are good or evil. Are bank money transfers safe? We'll check into the details.

Before I begin, banks have departments with various duties. The payment department is one. Others, including loans, mortgages, and foreign currency, I won't concentrate on. I'll simply concentrate on payments. The risk profile of each department is also important to consider.

Risk-averse payment departments everywhere. They would rather lose money than gain a lot of money and risk it all. This may vary per department.

One of the most crucial things to grasp when talking to bankers is the notion of a financial model. And if somebody from a blockchain company is present, attempt to discover things that will help you connect with bankers.

So, to explain this notion, I'll look at the simplest payment kind, called a book transfer. This happens when two customers of the same bank wish to transmit money to each other.

COPYRIGHT_WI: Published on https://washingtonindependent.com/ebv/bank-money-transfer/ by Alberto Thompson on 2022-03-07T06:02:01.143Z

We need to move 500 euros from one account to another. So no money, Make it tougher. We want to transfer 500 euros between ABN Amro and Engy, however, it's not easy. We need a plan. Create an ABN Amro account in the English system. So ABN uses ING.

ABN may then pay Ali 500 euros using Bob's account. But we need something on the top to show where other people's money goes. These two accounts are now linked and should continually reflect each other. So they're called mirrors. ABN Amro account at AIG, mirrored by several banks in bank money transfer.

A yellow dollar bank, a white internet globe, and a green euro bank digital art on a blue bg
A yellow dollar bank, a white internet globe, and a green euro bank digital art on a blue bg

This is a new financial model rule in transferring large amounts of money between banks If not, a disparity exists, which is common in reality. So people will become involved. You'll do it hypothetically. If you have commodities, you must demonstrate their viability.

Notably, this is not the case. They fear danger, say ABN and ING. ABN funding ING? ABN loses money if ING collapses. You wish to send Alice 500 euros this way. You may also create a bank that everyone trusts. Like a bank. Now I'll show you the ECB's strategy.

A typical individual or company cannot possess a central bank account. Only banks can. So ABN Amro has a CB. We may utilize IG's here. Aldiss gives us 500 euros. We blame ABN's book volume mirror. And so forth. Others paid, we ask. Bob, do I have to give IG 500 euros? So will the ECB. Then IG. Your bank has deposited 500 euros. Notify Bob. So we need interbank communication, hence Swift. Swift was formed long before we functioned the way we do today, but they have two vital roles in payment. The first is a communication network currently accessible through the Internet. Of course, it wasn't like this before, and it still is.

So everyone is mad with the ECB. First, an address. We have eight or eleven-digit bank identification with a certain format. Less is more. In ABN Amro, ABN Abney is at the bottom. So we have two digits for the nation Anel, two numbers for place A2, which is Amsterdam, and two digits for Aengus, also in Amsterdam. ABN Amro is now Swift Storchak. Your message will be acknowledged by the ECB.

Internet communications employ a best-effort paradigm, thus we recognize everything. Messages are retransmitted if lost. Swift saves the message. Swift may then say, "OK, here are all the messages." So we can retrace what occurred and what should have happened. Yes. With a network and message sending, Swift fulfills two objectives. How do they look? So they make standards, message definitions, of two sorts. M10 ex-ante is the standard style, although there are more. They all have three digits.

For example, M2 is a client payment to M2 or an institutional payment to another institution. when We also wish to inform another bank. We also require Actimel, which is a new ISO standard, and individuals who work with banks may be familiar with pain one and such. They connect banks. So, let's look at one of three negative credit client transfers. So we're genuine bank clients.

Do Bank Transfers Work Immediately?

Finding transmission issues is difficult. XML requires new names and fonts. A second envelope explains a change of institution. This XML file also contains content that identifies and describes a transfer. So, here's the situation. The projected system is called PROTEGEES (real-time gross settlement system). Some individuals and organizations term it real money. The money I deposited was from the central bank. a nerd But both transaction and goal are pricey.

The price choices for type two transactions are below. A single bank money transaction costs 12 1/2 cents. We know we can transfer a euro without paying 12.5%. So there's something else. We won't net Bachus for little payments. An example of a high-value payment is a firm transferring Tamilian to another business. So we go. Finally, ABN Amro, Rabobank, Asness Bank, and IAG. Payment orders come all day. So you want to send money through an app or online?

Consider ABN Amro notifying a clearinghouse that a payment has been made. eBay is a clearinghouse established in the Netherlands. Then they pile up the cash. The settling cycle Now we get payment lists from each bank. We can't cover everything. Assume ABN Amro sends and receives payments totaling 800000 euros. So ABN should get €200,000. In this cycle, one Target money transaction will spread all payments.

So EBA prepares everything and alerts all banks about incoming payments. That means IG hasn't paid Bob yet.

Abian, you perceive a puzzle. Other banks call it a wash account, some rename it. Fascinating! So, when Alice pays Bob 500 euros, the money comes from her account. So it's deducted and we need to move it. So keep it hidden for now. This isn't simply a 500 euro claim against ABN Amro. Unlike their own account, the interest suspense account is not mine to spend.

As soon as the settlement cycle ends, Stube's bank money is moved and relocated, and the ECB target system and all banks are notified. The last component is coming, but it's more challenging than the others. The Global Cross-Currency System: So let's spice it up. In the first place, the globe is Jewish.

Every year a new Elmau aspect develops that shows which banks are related in transferring bank money.

A multi-colored digital illustration of how money is transferred
A multi-colored digital illustration of how money is transferred

They are probably fake. Such as Citibank or JP Morgan, whereas Brazilian bank is linked to this American bank. Next is the sending bank. It was now a matter of delivering the funds to the eventual recipient bank. So, let's look at an example and do it! Bob no longer trades in euros since I moved him to Brazil. But he has BRL. And it's still with ABN Amro. Now Alice demands payment. We need money. Let's send 600 USD.

ABN Amro must first determine how much to take from Alice's account. So ABN Amro will decide. ABN Amro does not deal in USD. In this case, sending euros to a bigger bank enables foreign exchange. Then ABN Amro overdraws Alice's account. Beginning to hear is challenging, but let's not dwell on it. 500 euros are transferred from Alice's account to another. And will then expand its holding in euros.

So ABN Amro now owns the euros and removes the dollar-based decrees. Selling euros to ABN Amro for USD. They have to go someplace. So the target two system doesn't show the euros. A new level. That's because we're not moving euros. Nous Les vendors and ABN Amro cannot establish an account with the Federal Reserve because it lacks a US banking license. So they must begin. In this situation, they'll keep it at JP Morgan. This link is new.

Is it conceivable that JP Morgan has an ABN Amro USD account? Safra, a Brazilian bank, Googled it yesterday. So let us ponder that way, everything lines up perfectly. removing Crediting JP Morgan's mirror account and flipping the other side mirror. Subtraction. J. Safra receives USD. Mattituck was sent to Brazil, mirror debited their deposition is a mirror. Now USD will be exchanged into Brazilian Reals at Banco J. Safra. Bob does this but in disguise.

So deduct 2000 Brazilian reals. Bob got the work and was paid. It may seem challenging. But there's a lot to see. An embryo. Basically, events now have a checksum and are automated. The US and Brazil have distinct techniques to avoid numerous errors.

This is a handbook. Changing the beneficiary account number at JP Morgan, ABN to Bank, or J. Safra. Finally, they get it. It sends back an empty message. 119. ABN Amro receives the money and a manual procedure starts. Manual processes and queries cost banks time and money. So this is why offshore payments are costly. Lots of errors.

Some banks choose to charge consumers who make errors. You'll know them. Another issue is that we are aware of our errors. We paid for this. Money transfer from Europe to Brazil costs 15 euros. Then it's all good. Most banks do this. ABN Amro is also in Europe's time zone. JP Morgan is in a different time zone, therefore it is better for patients. After being sent to another bank, it merely sits there, waiting for the sun to come up. So it takes time.

For example, a US bank is now processing a payment from a European to a Brazilian. And we regulate US banks. They can't be related to terrorism. So JP Morgan may decide to postpone the deal to assess Bob's suitability. So, numerous factors contribute to current banking delays and fees. And for more complex instances, just come by after what? We can mail them later. Look at them, but think carefully. Payments are a risky business for banks. Thanks. Thanks, Mark. Thank you for unblocking. Let's be fast.

Is the crowd enquiring? Why does ABN Amro? So why does ABN Amro utilize a US bank? ABN Amro and Brazil can't be that little. So why does ABN Amro create an account with a Brazilian bank but not use dollars?

Great question. And I created those linkages. OK, but keeping this connection open costs money. For example, how many transactions with Brazil? It isn't free. So they avoid another commercial bank. So they monitor your liquidity and solvency all year. And we may want to take less money from your bank or take more.

So much is going on. There used to be more links. And now in banks, particularly as Europe unites. As a result, money is concentrated in a few huge institutions. Consider how assets like stocks and real estate are transferred. Is it the same or something else? Because that's how the blockchain is used.

Conclusion

This is how a world makes financial transactions without a blockchain system and a world with blockchain in today's modern era means an instant bank money transfer globally without borders and 24/7.

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About The Authors

Alberto Thompson

Alberto Thompson - I live in Vancouver, Canada, and work as a web developer and graphic designer. Back end programming (PHP, Django/Python, Ruby on Rails) to front end engineering (HTML, CSS, and jQuery/Javascript), digital usability, user interface, and graphic design are all areas of web development where I spend my days. I'm a huge fan of web creation and design in all of its forms, as well as assisting small businesses and artisans with their online presence.

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