What role do US banks play in international money transfers?

Predominantly two roles: US Dollar Clearing (Correspondent Banking Relationship or CBR as it is known) International Money Transfer to/from the United States. In the first instance, the US Bank that are authorized to provide US Dollar Clearing, act as Correspondent Banks for other financial institutions worldwide for US Dollar Clearing. As the US Dollar is […]

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Is it possible to create a single international currency that is supported by almost every country, that would become the only currency to be used in International trade? [It would replace the US. Dollar as the international currency.]

Possible? Yes. Will it happen in yours and mine lifetime? Probably not. Currency is a man-made token of exchange medium. The reason we keep having different currencies is because of geography, politics, religion, ideology, natural resources, etc. amongst many other factors. However, the one thing society cannot agree in general is wealth token. It is […]

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Can I use USD as cash for ordinary transactions in Venezuela (e.g., taxis, paying for a meal), or do I need to exchange money to get Bolivars?

You can absolutely use US Dollars. They are happily accepted. Most venues will quote you in USD to pay for product/services. With the way things are going int he Venezuelan economy, getting paid in foreign currency is what they would mostly like to get paid in. So, very much accepted everywhere. Don’t even bother changing your money […]

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Are national and commercial banks the same?

Pretty much. National banks are commercial/retail banks (depending on the country) except they are owned or majority owned by the Government. Nothing more, and nothing less. Their product offering is the same as any other commercial banks. It is just that the government has more (or complete ownership) of these banks. Prioritizing them to handle […]

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Is Bitcoin insured by the FDIC?

No. It is not. The Federal Deposit Insurance Corporation (FDIC) covers deposit insurance as held in the bank up to US$ 250,000 per account. Here is what is covered: FDIC insurance covers all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, […]

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