If you have ever had to transfer money using PayPal or a bank, you're aware of the painful and sometimes slow process of transferring funds.
In Australia, we have PayID, which allows for almost instant bank transfers. It's not always reliable, and not everyone supports it, so sometimes you'll find yourself transferring money to someone, only to discover they don't have PayID and sometimes wait upwards of two days.
I know people who worked on developing these "instant" payment systems, and what people don't realise is they have effectively built a layer-two solution on top of the existing 35+-year-old banking systems. Payments are still taking days; they're just honouring the transaction instantly and inputting the numbers in your account. Smoke and mirrors.
Despite Australia and other parts of the world having their instant transfer functionality, it's limited to domestic transfers. If you want to transfer money overseas, it can take days and sometimes require authorisation to approve the transfer.
I was recently paid $2000 USD for some development assistance to help migrate some components over and clean up the code. They sent it to me via PayPal. And guess what happened? PayPal released $500 of it and then "froze" the other $1500 as a safety precaution. I then had to provide them with proof it wasn't a fraudulent or suspicious transaction in the form of emails and an invoice. It then took two weeks to get my $1500.
It's suspicious being paid for a service via PayPal, apparently. Ridiculous.
And this isn't the first time I have encountered issues with international transfers, especially with PayPal. I had my account frozen once with $12,000 (earned from book royalties). This amount triggered all kinds of alarms over at PayPal HQ. It was a large payment for book royalties for a development book I authored. I had to provide a scan of my passport, driver's licence, a utility bill with my address, provide tax information and even talk to them on the phone to get my account unfrozen. It took two months after providing my information and waiting for it to be reviewed before I got my money.
And traditional banks are not any better. I once had an international transaction pending for 42 days because they had to verify the details of the person that sent it (for AML reasons allegedly), despite the amount being a little over $6000.
And it's for these reasons you realise one thing: crypto poses a real threat to traditional banks and financial institutions (PayPal, WePay, Western Union, etc.). NFTs and other hype aspects of cryptocurrency aside, the speed and safety in which you can perform transactions are unrivalled.
This is where Hive comes into play with its zero-fee transfers and speed; I could send tens of thousands in Hive to whomever I wanted in a matter of seconds. No verification process, no passport scans, and no hold.
The problem is if I want to be paid in Hive, it's a hassle to ask clients to go and buy Hive and then send it to me. Buying crypto can pose problems. Exchanges will put limits on the amount you can buy and trade before having to verify yourself. So, it's not as easy as saying to a client, "Go to Binance, create an account and then buy Hive, then transfer it to me. And, you also might need to confirm your identity through a convoluted process.."
If there were an automated way for someone to pay me and have it automatically convert to Hive at the point of sale and take a commission smaller than what PayPal or banks would charge, it would be a winner. Maybe that already exists, but I am guessing the unfair AML/KYC requirements that add in complex steps preventing the same ease of use a bank account does might prevent such a service from existing out of fear of money laundering concerns.
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I've also had a lot of problems transferring money internationally.
Its gotten much worse.
Not to mention, the banks make you feel like a criminal. My previous experience they made me feel like I was transferring money to terrorists or something. It's crazy.
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I believe Hive can represent the future in many fields; as far as payments are concerned, it currently applies to all Cryptos (or at least to the majority), they are much faster, anonymous and don't waste time. Unfortunately, however, there are still many who don't know how to use them... in my opinion, in the future, if we wake up, they will supplant all the classic systems. Nice reflection thanks for sharing!🤗
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Hive can disrupt a lot of things. People need to be mindful of how powerful the technology really is.
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