On: How ACH works: A developer perspective (2014)

[tomschlick]

I was referring to transfers between banks. I believe currently they go through the Federal Reserve in batches. A more distributed system could allow banks to transfer directly to/from each other in near real time.

[zodiac → tomschlick]

A centralised system would also "allow banks to transfer directly to/from each other in near real time"

[mhluongo → zodiac]

That wouldn't be "direct", it would be through a trusted third party... Who has banking hours, could censor the transaction, etc.

[hatsunearu → mhluongo]

Fiat currency REQUIRES the trust of the central bank, so that's not an issue.

[tscs37 → mhluongo]

That shouldn't be an issue if all parties trust the Third party.

It is only an issue if there is sufficient lack of trust that the involved fear such a thing would happen.

Otherwise a block chain is overkill.