EXFBased on trust protocol...
EXFWhether it is accepted or rejected by everyone today, it will be completely digital money that will be used as a medium of exchange in the future. In fact, we started using digital currencies a long time ago. Instead of using physically printed money by transferring it from one place to another, the fact that it started to be transferred over the internet or online meant the use of digital currencies.
Today, we witness how much the use of physical money has decreased with the mobile application or credit card provided to us by our bank. When we buy a house or car today, after making the necessary agreements, the agreed amount is transferred from our bank account to the other party's bank account. The numbers are decreasing in your account and the numbers are increasing in the other party's bank account. There is no physical money.
We go to the mall, we shop. We complete the payment with our credit card or our contactless mobile phone application. The numbers in our account are decreasing and the numbers in the other party's account are increasing. There is no physical money. Our experiences are examples that show us how much the use of physical money has decreased, and these examples are increasing day by day and are becoming ordinary.
It took a long time for humanity to use money as a means of exchange instead of the barter method for the exchange of goods and services, and digital money, which is transferred to any part of the world much more easily with the development of technology. However, the introduction of digital money brought many advantages as well as disadvantages. For example, in a purchase we make using physical money, there is never a situation like paying a third party instead of the person we have to pay the money to. Because we need to perform this action by coming face to face with each other. In the use of digital money, on the other hand, we may encounter the situation of sending money to a third party instead of the person we need to pay, by entering or selecting the wrong account numbers, although very rarely.
This usually does not happen nowadays by entering wrong account numbers. Bank application saves the accounts you have sent money to before for our convenience and presents the registered list to us in the next money transfers. By mistakenly selecting a different account from the list of accounts you have sent money to and sending it to the wrong person will cause the money to be transferred to the wrong person. The issue of sending the money to the wrong person by entering the wrong account number is tried to be reduced day by day with the development of technology and the increase in cooperation between banks, and such errors are minimized, especially in transactions within the country.
At the same time, another issue related to digital currencies is the requirement to pay a fee for the transfer. In all countries, the same procedure is not applied for money transfers within the country. In some countries, substantial transfer fees are paid when transferring money from one bank to another, or even to another account within the same bank. However, if the money transfer will be between accounts located in different countries, these transfer fees can become annoying. If we transfer money between accounts located in different countries, the transfer fee is not the only fee we have to bear.
We have to convert between different currencies. For example, when we want to transfer money from the UK to the USA, we have to bear the exchange rate conversion cost when converting the money to be sent in pounds to US dollars. As it is known, there is a cost between foreign exchange buying and selling prices. Thus, we have to bear the annoying transfer fee, exchange rate conversion cost for a single money transfer transaction.
Also, if we want to store the money in the original currency, ie pounds, in the bank of the country we are sending the money to, for example USA, we have to bear the exchange rate conversion cost again. In other words, in order to transfer the money in pounds in our bank account in the UK to our bank account in pounds in the USA, we have to bear the transfer fee and twice the exchange rate cost.
In the case of sending pounds directly from the UK to the foreign currency account opened in pounds in the USA, the cost will not be less than the above scenario. In the case of such a money transfer, both the sending bank and the bank with the foreign currency account will charge a substantial amount of transfer fees and other fees.
In addition, when you make a transfer between accounts in different countries, this process takes a minimum of 2 days. In some cases much more. In some transactions we make from different countries, technical situations such as the refusal of the counter bank may also occur. If the transfer is not completed, the money can be refunded. This is another factor that prolongs the transfer time.