Post
Topic
Board Service Discussion
Re: MtGox wires ARE delayed
by
samson
on 22/06/2013, 15:56:51 UTC
WTF ! If the US decides to go after Bitcoin in a big and more overt way then they could disrupt transactions which go nowhere near a US bank.

Whatever makes you think that a US Dollar transfer would go nowhere near a US bank?  For a brief description of how international wire transfers work, see this post on the Bitcoin Foundation's blog:

https://bitcoinfoundation.org/blog/?p=63

It's a fiat currency after all, so it only exists because because the US says it does.  And only US banks (or US branches of foreign banks) have access to the Federal Reserve system.  This isn't unique to the US and the US Dollar, BTW - it's just how fiat currency works.

roy

Interesting read. So this goes to show that the US could interfere with many more USD transactions around the world if they wanted to.

I guess one way to get around any interference would be to have the sending bank convert the USD into a different currency in house before sending the wire.

For example a Japanese company that deals with a lot of foreign transfers could convert a USD payment into Yen and then wire the Yen to the recipient where it would be converted by the receiving bank into the accounts native currency. This would probably cost a bit more though.