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Banks have a cost of capital when being a member of the FED, since they need to have capital reserves inside the FED. This is not cheap nor free.
When a person makes a payment to a merchant, in the fiat system there are around 32 steps between different actors (FED, VISA, banks, Square, etc.) that need to be satisfied.
"Bitcoin is money, everything else is credit. Credit is expensive, so fiat payment sucks. Lightning is magic."