Multinational personal banking

Or why it sucks that banks use borders as an excuse to charge fees.

If I use bitcoin to send money from, say, my savings account to my checking account (iow: from my private offline wallet to my phone wallet) I just do it. Which is exactly what the bank does. It costs a microscopic amount of my internet bandwidth, a microscopic amount of my computer cpu, a cost so infinitesimally small it is nearly impossible to calculate except in large scales. Which is exactly what banks do.

So, keeping in mind that the cost to banks, with their economies of scale, is going to be less than it costs me to shift value between two accounts… what explains my local bank charging me about $25 to wire money to my other account in the other country, which will also charge me about $25 to receive it?

Nothing does, other than greed.

Well, it so happens I have a solution. I need a check – in US dollars – which I can deposit via the phone app. And my bank can issue checks in US dollars.

So tomorrow I will get a check at the bank, then take a picture of it using my phone, which will get transmitted to the bank at a dramatically higher bandwidth cost to them, and the digital storage likely will also be orders of magnitude more than just a transaction record. And magically this will cost me nothing, unlike the wire fees.

There is absolutely no reason for this. If I know the routing number and account number of a bank account, I should be able to send money to it from my bank account. For free. Because it costs the banks effectively nothing. Heck, I could even make the case the destination bank should pay me a fee for discovering the routing/account and doing the data entry.

But because this is all artificially complicated and difficult it makes me hate banks even more. And learn how to live without them.