Bitcoin, Block chain Cross Border Funds Transfer


New Member
Jan 29, 2016
Lets say I am in country A and I want to transfer some funds to someone in country B. I understand the flow is through wallet and block chain. But how does the physical movement of funds takes place??

Also, like in the case of cross border payments there are banks involved, so in the case of block too is there any involvement of banks too ??

Lastly, how are the exchange rate decided and charge decided based on what parameters ??


Active Member
Dec 18, 2015
If I understand your question correctly...
There is no physical movement apart from information transferred in peer-to-peer network. Ultimately all BTC tranfers are messages that cause participants in the network to alter their views of the ledger.

No banks are involved... to quote Satoshi and the very first sentence in the whitepaper:
"A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution"


Dec 8, 2015
You need to define "funds" to get the answers you seek.

If your definition of funds equals fiat (cash e.g. US$, EURO, CNY) then the flow is like this:
Bank Alpha ==> Exchange(country 'A') ==> Bitcoin wallet(User 'Andrew' with address '1XXX45345') ==> Bitcoin Wallet(User 'Zak' with address '1ZDSD23434534') ==> Exchange(country 'Z') ==> Bank Zeta.

So money can move from one bank to another bank, via exchanges and user wallets, over the bitcoin network as a series of conversions. Rates for conversions between Bitcoin and Fiat depend on supply/demand in each location and, of course, the natural rate of Currency 'A against Currency 'Z'.

Or, if funds equals Bitcoin the flow is from Bitcoin wallet(User 'Andrew' with address '1XXX45345') ==> Bitcoin Wallet(User 'Zak' with address '1ZDSD23434534'). No exchange or Bank required on either side


New Member
Dec 20, 2015
South Florida, USA
@Adarsh , the bitcoins do not actually flow, like a bar of gold on a ship crossing the ocean. The system is a series of book entries, such that any user can keep a copy of the transaction history that is updated approximately every ten minutes.

When you send bitcoins to someone else, numbers are subtracted from your holdings and numbers are added to your recipient's holdings, minus transfer fees that are measured in pennies, regardless of the value of the transaction.

Once the transaction has been confirmed, a copy of that block's transactions is appended to the transaction log that you have a copy of.

The magic of Bitcoin is not the transmitting of electronic tokens through space, but the recording of the transfer of title in a common ledger.

When your recipient 'receives' the bitcoins that you have 'sent', he or she then needs to find someone locally to buy them.


Active Member
Aug 30, 2015
Have not tried this myself, but it should be possible:

1. Aquire bitcoins from someone directly for dollar paper rectangles.
2. Sell them on localbitcoins in your friends country, and ask the buyer of coins to deliver the fiat money of that country directly to your friends door.