Imagine you want to send a gift to a friend who lives in another country. But instead of mailing a toy or a book, you’re sending money. How does the money get from your bank to your friend’s bank? It’s a bit like passing a ball through a bunch of people before it finally gets to your friend. This is what happens in the current banking system when you make a cross-border payment, and we’ll break it down simply.
Blockchain and cryptocurrency offer exciting possibilities, like faster transactions, lower costs, and increased security. However, barriers like regulation, volatility, and the need for new infrastructure make it challenging for banks to fully embrace these new technologies.
In the future, we’ll likely see more banks using blockchain and cryptocurrency to send money across borders. But for now, they’re still figuring out the best way to do it while keeping everyone’s money safe and following all the rules. So, while you might not see your bank using cryptocurrency just yet, it’s definitely something to watch for in the coming years.
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