Anti-money laundering and fraud protections introduce a lot of bullshit and risks. Many human beings on either side of the transaction in a bank transfer are monitoring it, have to do a lot of paperwork and screening especially for large transfers (that’s the “bullshit” part, and someone has to pay them to do it which results in the high fees), and one risk is that the transaction will be erroneously flagged for AML or fraud and get held up and require even more bullshit to be pushed through. Another risk is that now two governments, not just one, have the power to freeze or seize the funds being transferred for whatever sanctions or legal reasons they feel like, especially if they’re involved in war or political conflict. It may not happen often in practice, but it’s still a possibility and cryptocurrency eliminates that risk completely. If I had to transfer money from the US to, say, Iran or China or Russia, I’d feel much more confident that it would get there if I used crypto.
Anti-money laundering and fraud protections introduce a lot of bullshit and risks. Many human beings on either side of the transaction in a bank transfer are monitoring it, have to do a lot of paperwork and screening especially for large transfers (that’s the “bullshit” part, and someone has to pay them to do it which results in the high fees), and one risk is that the transaction will be erroneously flagged for AML or fraud and get held up and require even more bullshit to be pushed through. Another risk is that now two governments, not just one, have the power to freeze or seize the funds being transferred for whatever sanctions or legal reasons they feel like, especially if they’re involved in war or political conflict. It may not happen often in practice, but it’s still a possibility and cryptocurrency eliminates that risk completely. If I had to transfer money from the US to, say, Iran or China or Russia, I’d feel much more confident that it would get there if I used crypto.
Valid points. Thanks.