Sending money from Saudi to Europe is complex. The transfer doesn't go directly because there is no network connecting all banks.
Enter Correspondent Banks. Your local bank uses an intermediary bank that has accounts with both parties. Sometimes multiple intermediaries are needed.
Each stop means a new Settlement, longer time, and higher fees. This chain is why transfers take days.
This complexity opened the door for Digital Currencies, especially Stablecoins. Transfers happen directly on the blockchain without middlemen, instantly and cheaply.
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That's why governments and central banks are looking at them as a practical solution for the future of Cross-Border Payments.
KEYWORDS
#FinTech#Blockchain#Stablecoins#CrossBorderPayments
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