Hello readers, today I am sharing a story about a friend of mine. He is not into cryptocurrency himself. He is rather a little off the grid, barely uses his phone, I think I’ve seen him with his laptop maybe once or twice. Very odd for a millennial, but that aside. My friend happens to have worked hard, made some smart investments, and made himself quite financially successful. I don’t know his exact net worth, but suffice to say he is a multi-multi-multi-millionaire.
My friend likes to travel, for both work and pleasure. He has been to countless cities in the USA and Canada and favours Europe for pleasure travelling. Of course, he has been to many places down south like the Caribbean, Mexico on all-inclusive resorts too.
I was talking to him not long ago and he mentioned that he has a lot of his money divided between the main Canadian Banks. I thought that this would be annoying or cumbersome, why would someone want to have so much money in so many different accounts? Perhaps having that much wealth is just dizzying to me in its own right though. But when I asked him why his response startled me!
I’m paraphrasing, but he said: “because when I travel some countries/cities only have some Canadian bank branches and there is no single Canadian bank with (enough) branches in all of my favourite travel spots”. So he essentially has his own personal pseudo “nostro vostro” account set up. He has divvied his money between the different Canadian Banks so that he can have access to his funds almost everywhere he goes.
This is literally the problem that XRP is solving with its bank international payment and remittance use case.
I told him this, but he was reluctant on the whole cryptocurrency thing. I’ve mentioned crypto to him a few times. I won’t push it on him (or anyone), but enough mentions and he’ll start asking questions (just like my other friends). And asking questions leads to research, which leads to crypto-enlightenment.
Hypothetically he could simply purchase some cryptocurrency and carry it around on a hard wallet and/or a mobile wallet (why not both?) and travel with those. This would greatly simplify his banking situation and allow him access to his money 24/7. Not all of us are fortunate to have such an inconvenient problem though. For those of us who are not able to fund multiple banks with hundreds of thousands of dollars for travel purposes, having a crypto wallet to store our crypto for easy access and to travel with makes a ton of sense.
I realize that this is not fully practical… yet. Simply because most places in the world are not accepting cryptocurrency as payment… yet. But the industry is growing and regulators will likely soon approve of the main cryptocurrencies, likely top 5 or top 10, namely Bitcoin, XRP, Ethereum, Litecoin, perhaps a stable coin or three. Also, the Bitcoin Lightning Network is being built out, which would make payments with Bitcoin much more realistic.
Ripple is doing amazing work at building out the XRP infrastructure and connections so that I am certain that in the not too distant future we will be able to transact in XRP at your local coffee shop or gas station or even hotel, Airbnb (or decentralized AirBnB), Uber, restaurants and flight tickets. Perhaps, if he owned enough XRP, and if enough banks and payment services were using xRapid then he might be able to travel simply by having XRP with him.
Ethereum is being developed worldwide by many engineers, companies and individuals. I have no doubt that Ethereum will also be widespread and used as legal tender within 2-5 years.
Even if actual crypto is not accepted as payment, it might theoretically still be easier to have a crypto wallet and send funds to be exchanged for fiat of whatever country you are travelling in (or USD).
I don’t travel as much as I would like, but I do know that I always find it a hassle to go to a bank to get some cash in whichever fiat currency of the country I am travelling to. Not only is it a time-suck to physically go to the bank to get the cash, but depending on the currency and/or how much of it you want/need, you must call the bank in advance. And let’s not talk about the absurd exchange rates that the banks rob you with. So frustrating.
This problem could easily be solved by using cryptocurrencies internationally. Simply send your cryptocurrency to your mobile wallet and board that plane for a blissful beach vacation or wicked travel adventure!
There are multiple blockchain based rewards tokens out there now, but I see these as perhaps a modest improvement on current travel point systems like Air Miles. I think that true travel freedom comes with simply enough money, whether that is USD or crypto. We just need crypto to be more widely accepted, and to go up in value/market capitalization.
Anyway, I’m sure that most people do not have the personal nostro vostro account “problems” that my friend has. We may wish that we had those problems. But we do have the solution: cryptocurrency. Cryptocurrencies are borderless, open, decentralised, uncensorable, peer-to-peer digital cash. They would certainly solve the problem of having to store the same dollars in various different bank accounts to solve your frequent travelling needs.
Yes, my friend is real, and yes he does have this problem. No, I am not even a fraction as wealthy as him, but I am not his friend for his money. I do aspire to similar levels of financial freedom though.
Please let me know what you think! Like, comment, share! Thanks.