
Bitcoin Is 300 Times Cheaper Than Wire Transfers, Banks Take 83% Profit - doener
https://www.newsbtc.com/2018/09/18/bitcoin-is-300-times-cheaper-than-wire-transfers-banks-take-83-profit/
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wahern

      According to Bank of America’s official data, the $302
      billion bank charges $30 for outbound domestic wire transfer
      and $35 for outbound international wire sent in foreign
      currency.
    
      But, Fedwire, the official real-time gross settlement funds
      transfer system operated by the United States Federal
      Reserve Banks that allows banks to electronically transfer
      funds, charges $0.25 per transaction.
    

The bank, not FedWire, must cover the cost of fraud.

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WhiteOwlLion
[https://www.bankofamerica.com/content/documents/deposits/ser...](https://www.bankofamerica.com/content/documents/deposits/service/pdf/Domestic-
international-wire-transfers-info-sheet.pdf)

I wish Bitcoin was around when I was sending international wires to China.

People forget it takes days to get fiat to BTC then back to your local fiat.
So, in reality, Bitcoin is not usable real-world solution.

~~~
wahern
The fees are high largely because of fraud. Both directly (cover the costs of
actual fraud) and indirectly (channel consumers to using other methods that
leave the bank less exposed). Wire transfers are tailored for businesses
sending large amounts of money. If the bank has reason to trust you (e.g.
wealthy client), you can often work with the bank to reduce or eliminate wire
transfer costs.

Transactional banking law has evolved over the centuries to leave the retail
bank holding the bag for fraud. That's because they're the least cost avoider
(i.e. the agent best placed and most skilled to minimize fraud). But it also
means they're highly sensitive to these issues, and are reticent to expose
themselves unless they've arranged recourse in case of fraud.

Newer methods of transferring money seem cheaper only if you discount the cost
of fraud. Nobody factors the billions of fraudulent Bitcoin transactions into
the cost of Bitcoin, even though a stolen ATM password or account number is
exactly analogous to a stolen Bitcoin wallet password or online account. If
Bitcoin miners were legally made liable for fraudulent transactions (as banks
are for unauthorized use of stolen credentials), you can bet the cost of
Bitcoin transactions would skyrocket.

Fast, automated payment and money transfer mechanisms are unfathomably
attractive to criminals.

