The financial world is one of the more complex systems operated by humans on the planet. Simplifying the flow of goods and services is a pivotal aspect of global economic progress. In the past, the internet has been heralded as the major globalization tool of the modern era.
However, when you start to break down the potential of new decentralized data systems like Distributed Ledger Technology and the promise of certain digital assets, a new paradigm is setting up the foundations needed by existing financial institutions to leap-frog the potential energy of the internet by actually allowing for data and money to move at the same speed!
What if I told you the fastest way to send $ 1 million USD from NYC, NY to a person in London, England would be to stuff it into a suitcase and fly on a plane to your destination?
Would you believe that a traditional wire-transfer, or any transaction that passes through an automated clearing house, will take around 5-7 days to settle. This assumes there are no errors in KYC/AML checks, processing between commercial banks, bouncing between federally operated central banks, and finally sourcing the cash to actually withdraw in the domestic currency requested by the receiver of the transfer.
At LEDGERSAFE we believe that future of money is going to move in tandem with the value of fast data. If you can move data at lightning speed, then money should move at the same speed, if not faster.
This concept makes sense when you consider how much money it takes to move other money around the world. Cash reserves, processing fees, servicing surcharges, and more costs are tacked onto transactions by banks who’s responsibility is to maintain a secure financial network.
Payment channels like remittances and international wire-transfers create even more friction for monetary transition due to the requirement that the details of the transfer are provided to check for violations of anti money laundering and know your customer policy required by federal regulators to ensure the secure functionality of the entire network. I believe that optimizing compliance for global money transfers is the first step in increasing global liquidity.