[parm289]

For every discussion about Bitcoin, I wonder if improving the ACH system and/or writing services on top of it would be a logical next step to make the existing banking system more user-friendly.

For example, Venmo[0] is simply an app layer over the ACH system. Sending someone money is as easy as sending a text on iOS, or an email on your computer. Payouts to your bank account can be same-day but usually take 1 business day.

Other than the pseudonymity (which is admittedly one of Bitcoin's stated value propositions), doesn't Venmo capture most of Bitcoin's advantages? What's preventing someone from using the Venmo API to, for example, write a reddit micro-tipping bot? Is it that an app having ACH access to people's bank accounts is scary?

Those aren't rhetorical questions -- I'm genuinely interested in knowing what advantages cryptocurrencies have for the layperson compared to an enhanced ACH system where security is already taken care of.

(I do use Venmo, but am not affiliated with the company otherwise.)

[0] http://venmo.com

[kalleboo]

One of the big upsides I see to Bitcoin is the borderlessness of it. Where I live, we already have free same-day wire transfers we can initiate from internet/mobile banking, and services supported by all the big banks for cheap (15 cents fixed fee) instant transfers using cell phone numbers as recipients. I think most countries have similar services. But as soon as you cross a border, suddenly everything has 10x greater fees, you run into anti-terrorism/anti-money laundering regulation snags, and so on.

[parm289]

You mention fees and AML/anti-terrorism regulation...it seems that the major impediment to cross-border wire transfers and ACH is regulation, not a lack of infrastructural capability. Assuming most countries have the same goals with regard to regulation, it seems feasible to develop some overarching regulatory system which would permit international transfer. I wonder if one can transfer money easily within the EU -- that could serve as a next step or a guide to implementation.

Just brainstorming here. I really do suspect that most of the benefits of cryptocurrency are due to the way it interacts with technology, which can be imitated through just a bit of innovation in the banking industry. (Imagine banks allowing customers to script transactions, like Bitcoin, or providing direct APIs to bill-pay and ACH transactions.)