Please forward this error screen to sharedip-pengertian bitcoin value. 150m in a single Bitcoin transaction. 404139721221472256 There was much comment about how expensive or difficult this would have been in the regular banking system – and this could well be true.
In this article, I hope to change this situation by giving a very simple, but hopefully not oversimplified, survey of the landscape. There isn’t a pot of money sitting somewhere with your name on it. It becomes one of their liabilities. That’s why we say our accounts are in credit: we have extended credit to the bank. To understand what is going on when money moves around, it’s important to realise that every account balance can be seen in these two ways. Let’s start with the easy example.
10 to your friend’s account. We can represent this graphically below: the only parties involved are you, Bob and Barclays. This is where it get more interesting. Why would HSBC be interested in agreeing to owe Charlie more money than they did before? It can’t be Alice: Alice doesn’t have a relationship with HSBC, remember.
By a process of elimination, the only other party around is Barclays. Barclays and Barclays held a bank account with HSBC? 10 on deposit with Barclays, could increase Charlie’s balance. And it all balances out for Barclays and HSBC.
Graphically, it might look like the diagram below. This builds on the previous diagram and adds the second commercial bank and highlights that the existence of a correspondent banking arrangement allows them to facilitate payments between their respective customers. Most obviously, it only works if the two banks have a direct relationship with each other. This clearly drives up cost and complexity. More worryingly, it is also risky. Look at the situation from HSBC’s perspective.
One way round this is to alter the model slightly: rather than Barclays crediting HSBC’s account, Barclays could ask HSBC to debit the account it maintains for Barclays. That way, large inter-bank balances might not build up. However, there are other issues with that approach and, either way, the interconnectedness inherent in this model is a very real problem. We’ll work through some of these issues in the following sections. The MT103 message enables one bank to instruct another bank to credit the account of one of their customers, debiting the account held by the sending institution with the receiving bank to balance everything out. You could imagine an MT103 being used to implement the scenario I discussed in the previous section.
We’ve shown that transferring money between two account holders at the same bank is trivial. We’ve also discussed how electronic messaging networks like SWIFT can be used to manage the flow of information between banks to make sure these transfers occur quickly, reliably and at modest cost. First, we need to acknowledge that SWIFT is not cheap. 10 to Charlie, you would soon notice some hefty charges on your statement. Think about how much money Barclays would need to have tied up at all its correspondent banks every day if the system I outlined above were used in practice.