Elon Musk, founder of Tesla and SpaceX, criticised modern banks for their slow systems and insecure databases.
A Twitter user under the handle Pranay Pathole posted a photo of young Musk while he was interning at one of the banks.
Elon worked as an intern at a bank. It was there he realized that banks track money with just numbers in a database, and so he realized that transferring money from one bank to another online should require very little bandwidth and few infrastructure resources … pic.twitter.com/xv5VSBy8Am
— Pranay Pathole (@PPathole) February 13, 2021
“That is where he realised that banks track the movement of funds solely by numbers in databases. And therefore he realised that online transfers from one bank to another should require very little bandwidth and minimal infrastructure resources.”
Musk replied that this is indeed the case — banks are largely fragmented, and their heterogeneous databases are characterised by high latency and weak security. This, in his view, is especially evident in [simple_tooltip content=’ACH (Automated Clearing House) — a U.S.-based interbank payments platform, an alternative to the international SWIFT.’]ACH-payments[/simple_tooltip] and card transactions.
User Mike Co left a comment saying that the entire central-bank-run monetary system is fragmented.
Now consider the balkanisation of global central banking. There are ~180 fiat currencies, all of them fundamentally incompatible- and most are inherently worthless.
— Mike Co (@burningw0rds) February 13, 2021
“There are about 180 fiat currencies in existence. All of them are fundamentally incompatible, and most are worthless.”
Earlier, Elon Musk spoke out against custodial wallets, urging people to avoid them at all costs.
Tesla, Elon Musk’s company, invested $1.5 billion in bitcoin, pushing the price of the cryptocurrency to new highs.
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