There is a stark difference in dealing with Fiat and Bitcoin. Recently I had the opportunity to experience this first again hand, and it has re-enforced the power of Bitcoin to me. At Ignite Financing, we often have to buy (expensive) equipment from all over the world. We’d prefer to do this with Bitcoin, being a Bitcoin company, but sometimes Fiat is what we need to deal in.
Here’s a breakdown of how my recent wire transfer went:
- Enter wire recipient details via bank’s on-line system: Required information is: account number, routing number, SWIFT, recipient physical address, recipient bank address.
- Wait for the “wire template” to be activated (up to 24 hours).
- Once the recipient wire template is activated, set-up the actual wire, enter in all the details of the transaction, choose currency.
- Unbeknownst to me, the bank then blocks account and locks on-line access. * Interesting side note, bank (major multinational conglomerate bank) offers no 2FA options.
- Receive a phone call from the bank’s Money Movement department regarding: “suspicious activity in your on-line account”, reporting I need to authenticate via debit card specifics (PIN, expiration date, security code). Since this is an inbound phone call, I tell them I will call them back to verify their identity.
- I call them back at an official number. The representative who answers doesn’t know who the Money Movement department is, sends me to the Wire department, which is the correct team thankfully. We perform the authentication successfully. Representative informs me my account is now unblocked (this is when I found out it was blocked in the first place).
- The representative asks me a series of questions: do I know the recipient personally, what is the money for, will I be sending additional wires to this person. After answering these, the representative authorizes the transaction and unblocks the account.
The wire will process in 3-5 business days. Costs are $40.00 to send International Wire, not including fees recipient will pay ($15-20).
Same transfer in Bitcoin:
- Recipient provides public address.
- Open wallet and send Bitcoin, include small miners fee (0.0002 BTC, or roughly 10 cents)
- Wait ~1 hour for 6 confirmations.
Finished. Really, that’s it. No temporary blocking of accounts, just 5-10 cents in fees, clears in an hour or so. Amazing.