Lamberth

Some sad people just want the world to burn. And I thought I have an age crisis..

I spent quite some time decommissioning IBM mainframe applications. Decommissioning those lovely IBM solutions is both cumbersome and costly thanks to IBM’s cost model and their outrageous contract structure. Those 97% and 90% are just waiting for an alternative, almost everybody who worked with IBM truly hates their software by now.

If it’s not a significant amount, the easiest way would be to create an XRP denominated vault in Revolut app and enable a recurring funding for it. Revolut does not allow you to withdraw crypto though, therefore it is not suitable for substantial crypto investments. Besides, you can automatically send spare change to the Revolut vault with each transaction.

Which in turn might lead to a Capital add-on, not specified by the regulation. @KevClem, you are right though, it’s more “perception of risk” than “risk”.

Completely agree but only if a bank decides to keep the asset on its balance sheet. Luckily, financial regulation very much differs from country to country and a company can be regulated as a bank in one jurisdiction but as something else in another. PayPal is a great example, its regulation varies from a bank to an aggregator in different countries. Tier1 banks also have work-arounds, a semi-independent fund can be established, separating bad or just “unwanted” assets from the main balance sheet. I am not saying banks will be holding DA short term (mainly because not many truly understand them) but it is technically possible.

Why Jan 1st?

I am bound by a contract and am not allowed to buy XRP. I can keep the position I have though. Buying is not an option. Selling, well, whenever I think about it, my inability to buy makes the sell not that attractive. I don’t care if we are in the $0.1 - 1 range for the next 10 years, you’ll still see me around from time to time.

Make it 10 years, it’s a nice round number. Um, 2029 sounds.. far away.

Moneygram is a relatively big company and will probably be the first mover in the ODL usage but 100 billion? Come on! https://www.investing.com/equities/moneygram-int.-balance-sheet

“Ripple <...> cross border payments marketed to GTS clients” + “P&L Ownership: Drive transaction and revenue growth and manage associated financial processes (eg forecast, etc.)”?! My reaction to this is WOW! For those of you who don’t know what GTS stands for: “The GTS organization provides comprehensive global treasury solutions to clients, including liquidity management, payments and receipts, trade and supply chain finance, foreign exchange, commercial card services, and custody and agency services.” The fact that Ripple products (which have something to do with liquidity and payments!) are marketed to clients as a standalone service with its own P/L is huge.

Thank you, i am sooo honored. And special thanks to my mom and dad, I would not be able to pull this off without them!

xCurrent is not an xRapid’s killer, it is a necessary next step before xRapid can be used. As it has been pointed out many times, GPI competes with xCurrent. Ripple is betting that xRapid will be an evolutionary next step because 2 hops in theory should be cheaper than, say, 5. It might be so, it might be not. Market depth, liquidity, LotLR etc etc. Financial system is not static though, it will start adjusting itself when xCurrent (and/or GPI) is widely used which will inevitably lead to lower (in certain cases even zero) nostro reserves. Summary just to make my opinion clear: Ripple has a sound strategy. More importantly, they adjust the strategy as they go which is even better. XRP alone won’t make nostro obsolete, xCurrent + xRapid + XRP might. The system also adjusts itself and lower nostro reserves (delivered by GPI/xCurrent) might be a good enough improvement to slow down further development. CBDC is an unknown at this point which explains why Ripple is so keen to work with the regulators.

Say, you have a PayPal account which you use for your business to send money to your partner abroad. There are other ways to send money but this particular partner only accepts PayPal. You top up you PayPal account only when you need to send money (and probably don’t care if $10 is left now and again because, well, it’s $10). Imagine that topping up the account takes 4 days and you don’t know when you are out of stock and need to pay for the next delivery. You’d have started managing your account much more carefully, planning for the next week at least (and you probably don’t want to hold $10k if you only spend $1k per month, right?). This is the way to think about nostro accounts. It brings a philosophical question, if nostro technically exists but is empty most of the time, does it really exist to you? As for keeping money in different jurisdictions, you need to remember that many Tier1 / Tier 2 banks are multi-national entities which have presence in more than 1 country. Ripple’s multi-hop feature does not necessarily need to go through XRP (and it does not as of now). There is hope though, in theory 2 hops should be cheaper than, say, 5 (subject to liquidity, market depth etc etc).

You actually do (with a certain probability), that’s what Treasury departments do on top of all other things. FIs have multiple ways to fund their current operations in case of unexpected funding gaps, holding reserves is not the only option. Problem of the current system is that if you can’t move money during the day (it takes days), there is no other option but to borrow overnight in case of an “overdraft”. Higher velocity of money solves this problem. Bear in mind, as a FI you don’t care about intra-day fluctuations, it is overnight what counts. P.S. I can imagine that the system will re-balance itself with the higher velocity of money and FIs will stop thinking in overnight batches but this is another discussion altogether.