27. The Underlying Technology Behind Fiat Standard
The Bitcoin Standard Podcast
00:00
Bitcoin to Bitcoin
I don't know the workings of the actual app itself, whether I can spend from the app, whether it works like a bank account. You're right that it depends to a very, well, basically a total extent for its functioning on the liquidity in the Bitcoin to fiat pools. It's not really happening in any kind of judicial sense at all. If you do have the liquidity on both ends, then effectively you can just run what is called the Hawala system. The exchange shops will essentially coordinate with one another and clear each other's balances for one another without even needing to settle all that often with one another.
Transcript
Play full episode
