Cross-Border Payments: Programmable Money
To provide specific details of how cross-border payments operate and function when programmable money is used.
Bitcoin’s Use in Cross-Border Payments
- Bitcoin has the ability to reduce the costs in the cross-border payments markets.
- Powered by blockchain technology which works as a ledger for all the transactions done on the network, Bitcoin allows sending of cheap and fast transactions across the word.
- Large and small amounts of money can be sent to different users in a few minutes.
- Once the sender initiates the payments, the transaction is first approved by miners and broadcasted by nodes across the whole network.
- The process can last for a few minutes up to some hours.
- However, most transactions are processed in 10 minutes and the recipient receives the money.
- The transaction fee for sending a few thousand or hundreds of dollars can be a few cents.
- Larger transactions that are above $1 million can have a transaction fee of a few dozen dollars.
- The cryptocurrency Twitter account called Whale Alert stated that on December 20, 2019, a Bitcoin transaction worth $72.21 million incurred a transaction fee of $25.
Summary of Early Findings
- Our first hour of research determined that programmable money is already been used for cross-border payments. We have provided details for Bitcoin in the early findings.
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