Some time ago, some foreign exchange traders were promoting bank draft transactions. Today, I will analyze the advantages and disadvantages for you from an objective perspective.

In the over-the-counter cryptocurrency market, cash is generally used. The disadvantage is that the counting efficiency is extremely low. It takes a professional more than one and a half hours to count two million using a banknote detector. Not to mention retail investors, the security is not very good either.

So there is a cashier's check transaction, which looks like this:

Baidu Science Popularization: A bank draft is a note issued by the bank after the applicant deposits the money into the bank, promising to unconditionally pay a certain amount to the payee or holder upon seeing the draft.

It is like the "silver note" in ancient times. You can use this "silver note" to go to any bank to get the cash marked on the face of the note or transfer it directly into your account.

How to use it?

The applicant (buyer) takes cash or transfers money to the bank, fills in the payee information, and then in the over-the-counter transaction process, gives the bank draft to the seller, and the seller gives the assets to the buyer.

After the transaction is completed, the seller can take the promissory note to the bank to withdraw cash or transfer the money to his own account.

There is no cash transaction in the whole process, which is very safe and there is no need to worry about being robbed. The applicant (buyer of currency) cannot report the loss. The report of loss needs to be made in court for the judgment to take effect, and the crime of forging this bill is very serious (requires a strong sense of trust).

The whole process seems perfect, right? Well, everything has its pros and cons. Now that we have the pros, what are the cons?

1. First of all, it is only applicable within the same city. The buyer and seller must be in the same city to use this promissory note.

2. Secondly, when you deposit money into a currency trader, you must specify a payee (it can be transferred later), and it cannot be easily revoked (you need to go to court). What if the transaction fails?

3. Black capital cannot be eliminated but its source can be traced.

4. Many banks have not been doing this business for 5-6 years, and there are very few staff members who understand it.

OTC transaction, guess why the seller asked for an OTC transaction?

Because the first is to eliminate illegal capital, and the second is the anonymity of cash.

Bank drafts themselves are traceable and cannot eliminate black capital. The operating principle is that currency traders receive upstream funds (or cash) and then go to the bank to issue a bank draft. This behavior is based on real-name registration and cash is recorded.

The funds of the currency traders themselves are the funds given to them by upstream. The sources of trading funds for OTC U merchants are nothing more than currency speculation, black and gray industries, online gambling, pyramid schemes, telecommunications fraud, etc. The bank flow can easily trigger the bank's anti-fraud system and be frozen by the public security and other departments.

Do you understand?

The currency dealer takes the money (we don't care what kind of funds it is), deposits (transfers) it into the bank in exchange for a bank draft, and then the draft is transferred to the seller (retail investor). You use the draft to withdraw cash or transfer it to your own account.

In theory, the bank's money is given to you, but this thing can be traced, which is equivalent to a direct transfer from a currency trader to you.

A bank draft can only guarantee the security of the transaction process, but not the transaction itself. In other words, it facilitates the transaction process, but cannot solve the problem of frozen accounts.

Don't be fooled by some people's exaggeration. Security, liquidity and price are an impossible triangle in themselves. You have to give up something to obtain the other two rights.

You can avoid a lot of things as long as you don't trade with strangers.

There are many absolutely safe methods. Individual investors can open a Taobao store, sell their own products, and ship goods in a formal manner, which basically eliminates black capital. However, the premise is that there must be trust. Without a foundation of trust, everything is empty.

Therefore, those conscientious currency traders who freeze the currency without reason and pay full compensation do have their own market, and retail investors are also willing to lose some money in exchange for absolute security.

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