Effective February 1, 2023, some banks particularly New York’s Signature Bank will no longer process fiat currency transfers to Crypto Exchanges with a value less than $100,000 via the SWIFT Network.
SWIFT [an acronym for the Society for Worldwide Interbank Financial Telecommunication] is the world’s most critical financial network – facilitating trillions worth of international money settlements daily – it is a somewhat secretive Belgian-based cooperative.
New-York’s Signature Bank through the ‘Swift Network’ provides banking services to prominent CEXs and DEXs including Binance — the World’s leading Cryptocurrency Exchange prompting an announcement to Binancians that it will no longer process transfer payment below $100,000 citing new rules instituted by its banking partners — operating on the Swift Network.
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One of our fiat banking partners, Signature Bank, has advised that it will no longer support any of its crypto exchange customers with buying and selling amounts of less than $100,000 USD as of February 1, 2023. This is the case for all of their crypto exchange clients.
As a result, some individual users many not be able to use SWIFT bank transfers to buy or sell crypto with/for USD for amounts less than 100,000 USD.
FinanceLot on Twitter said, the Crypto Market pump was perfectly timed to suck retail back in before they passed the new SWIFT rules. 90% of retails in the Crypto Industry are below the $100k threshold which means their funds is trapped on Feb 1st. This is why the average person should learn about using Tether in trading and commerce.
SWIFT Network is a protocol used by banks for cross boarder transactions. This will affect Crypto Exchanges, but Cryptocurrency Users can still buy and sell crypto on exchanges and send crypto anywhere in the world on their respective Blockchains.
As Bank payment channels get more restricted, merchant and individual Bitcoin and stablecoin adoption is likely to increase significantly. Banks continue to fail serving billions of people and tens of thousands of companies around the world for no good reason.
Presumably, that decisions to restrict commerce pushed by the Supranational groups may be the reason why dollar usage is declining globally. Getting dollars in the hands of everyday people and businesses is a key part of the U.S. national interest. Tether helps solving this problem.
Couldn’t they use XRP to do this ?