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/biz/ - Business & Finance

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20633569 No.20633569 [Reply] [Original]

How do banks know that money being transferred digitally is real? When someone sends money to your account, how does the bank verify that it is money and not just random 1s and 0s? Cash deposits are obvious (you show up with the money and physically give it to them), but how does it work if I want to eTransfer you $50? How do they know I really have $50? If there were only two or three banks worldwide it might make sense, but how could you possibly know that a bank in Barbados transferring money to Canada actually has any money in it?

>> No.20633597

The smoothest brain I ever felt

>> No.20633640

>>20633569
settlement and clearing systems
https://youtu.be/48xtrmGGGqw?t=77

I had no clue how they worked either and still really don't and I recruited these people for central bank consultancies sometimes

>> No.20633642

>>20633569
it's only real in the sense it's limited by regulation.
Right now there are 0% reserve requirements, it's not real in a physical sense

>> No.20633681
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20633681

>>20633597
That's what I said about your mom last night

>> No.20633691

>>20633569
>nostro/vostro reconciliation
chainlink solves this

>> No.20633791

There's middlemen that handle that. This one particular issue is the big thing crypto fixes.

>> No.20633861
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20633861

>>20633791
indeed

>> No.20633954

>>20633691
XRP destroys this kek

>> No.20634087
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20634087

>>20633569

anon stop worrying about economics and worry more about tokenomics

>> No.20634152

>>20633861
Let me suck her fucking toes.

>> No.20634872

Bump

>> No.20635813

It's all on the blockchain

>> No.20636030

>>20633681
Gottum

>> No.20636280

Banks use encryption. If 2^128 gets hacked its: credit cards, bank digital dollars, all passwords to everything including crypto, most top secret info. So for that reason they trust that the number is real