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XRPHornets

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  1. Like
    XRPHornets got a reaction from King34Maine in Interesting debate on Twitter involving David Schwartz, Tom Channik, Ari Paul, Rob Lee   
    Totally agree.
    I also think corporate treasury seems a more viable business opportunity than getting big banks to use XRP.
  2. Haha
    XRPHornets got a reaction from Dogowner5 in Are you like my dog?   
    Only because you can’t reach ?
  3. Like
    XRPHornets got a reaction from Crypkey in UK Crypto Tax   
    If, in the future,  you do have a large enough sum of XRP that you can live off, the best way to proceed is to take your capital gains as income, use your 9k capital gains tax free threshold, and then declare the rest as capital gains at 20% .
     
    For example, you take 100k per annum as income.
    •11.7 k as personal income at 0% tax
    • 11.3k as CGT tax free allowance
    • 77k as CGT at 20%
     
    ....which means on 100k annual earnings you ll pay 15.4k in tax. (ie 0.2 x 77k)
     
    This means you can have a very tidy income of 100k per annum paying only approx 15%, whilst the remaining XRP continue to generate capital wealth.
    Im told you can register in Isle of Mann etc but not sure how I feel about the morality of that. Only paying 15% tax on a decent income is fine by me.
  4. Like
    XRPHornets got a reaction from Finesse in 200+ Partners?   
    XRP is always the last of the major alts to pump . This extended accumulation period means that when it goes it really goes .
    Just look at its chart history. 
  5. Like
    XRPHornets got a reaction from GiddyUp in 200+ Partners?   
    XRP is always the last of the major alts to pump . This extended accumulation period means that when it goes it really goes .
    Just look at its chart history. 
  6. Like
    XRPHornets got a reaction from Julian_Williams in 200+ Partners?   
    XRP is always the last of the major alts to pump . This extended accumulation period means that when it goes it really goes .
    Just look at its chart history. 
  7. Like
    XRPHornets got a reaction from Cesar1810 in EU Launches Blockchain Consortium With Ripple, IBM Committed   
    I believe the L Oreal heiress is the richest woman in the world. Not bad for a company that whole business premise is Snake Oil Salesmen.
  8. Like
    XRPHornets got a reaction from fiik in EU Launches Blockchain Consortium With Ripple, IBM Committed   
    I believe the L Oreal heiress is the richest woman in the world. Not bad for a company that whole business premise is Snake Oil Salesmen.
  9. Like
    XRPHornets reacted to JannaOneTrick in The Forex Market could be far bigger than you think   
    It has been a long time since I wanted to write this post, but there are just so many ideas in my head I always felt overwhelmed with doing it.
    So bear with me it is going to be a tad technical and a rather long post.
    To those who have studied international trade or logistics it will be piece of cake.
    TL;DR: Skip to the back-office section way down this post.
     
    When I discovered Ripple business plan, it did not take me long to think about the amazing opportunities it offers with the Forex market.
    We know Ripple wants to tackle the Forex market and is already penetrating it.
    The daily FX, despite its recent slowdown, is estimated to have a 5 Trillion daily volume (Source: BIS).

    When we think about the FX market, what do we picture ?


    A bunch of dudes in suits ? Red and green numbers ? Yeah me too
    But who really uses the FX market ?
    Banks
    The greatest volume of currency is traded in the interbank market. This is where banks of all sizes trade currency with each other and through electronic networks. 
    Central banks
    Central banks, which represent their nation's government, are extremely important players in the forex market. A central bank is responsible for fixing the price of its native currency on forex. This is the exchange rate regime by which its currency will trade in the open market. Exchange rate regimes are divided into floating, fixed and pegged types.
    Investment Managers and Hedge Funds
    Portfolio managers, pooled funds and hedge funds make up the second-biggest collection of players in the forex market next to banks and central banks. Investment managers trade currencies for large accounts such as pension funds, foundations, and endowments.
    Individual Investors
    The volume of forex trades made by retail investors is extremely low compared to financial institutions and companies. However, it is growing rapidly in popularity. 
    But there is one actor I would like to give a particular attention in this post: 
    Corporations
    Firms that are involved in importing and exporting conduct FX transactions to pay for goods or services.

    Much freight transport is done by ships. An individual nation's fleet and the people that crew it are referred to as its merchant navy or merchant marine. Merchant shipping is the lifeblood of the world economy, carrying 90% of international trade with over 100,000 commercial ships worldwide. On rivers and canals, barges are often used to carry bulk cargo.
    Shipping formulas
    Depending on the stuffing and unloading operations, the container will be:
    FCL start - FCL finish: From sender A to recipient A; FCL-LCL : sender A then unbundling on arrival to different recipients; LCL-FCL: grouping initially to a recipient; LCL-LCL: initial grouping and unbundling on arrival. FCL: Full Container Load
    LCL: Less Than a Container Load
    Many firms send large amounts of products at once, or send multi-million-worth products by ship. The associated risk is huge and therefore that is why the Incoterms exist. 

    To further enhance the feasibility of such trades, firms which send expensive or massive products from one part of the world to another can decide to use a Letter of Credit (LC).
    A letter of credit, also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Letters of credit are used extensively in the financing of international trade, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as an underwriter, where it assumes the credit risk of the buyer paying the seller for goods.
    Here is a very simplified diagram of the LC process:

    Now we are getting to the interesting stuff.
    What does it mean for us?
    The reason why I created this topic is: Forex exchange risk
    Companies trade forex to hedge the risk associated with foreign currency translations.
    Foreign exchange risk (FX risk) is a financial risk that exists when a financial transaction is denominated in a currency other than that of the base currency of the company. The exchange risk arises when there is a risk of appreciation of the base currency in relation to the denominated currency or depreciation of the denominated currency in relation to the base currency. The risk is that there may be an adverse movement in the exchange rate of the denomination currency in relation to the base currency before the date when the transaction is completed.
    Let's take an example:
    You are a French wine exporter (yes French, it's me who decide here ) and you concluded a contract with a US customer on March 1st of 2019. The deal is processed for an amount of $ 50,000 with a payment term of 3 months.
    As of March 1st, the exchange rate between the dollar and the euro is $ 1 = 1.5 €
    On June 1st, the exchange rate has changed; it is now $ 1 = 1.0 €
    The claim of the French exporter thus goes from 75.000 € to 50.000 €: the miss to gain is thus of 25.000 €
    So how to protect yourself from the FX risk?
    Many opportunities are available to protect you against foreign exchange risk. You can indeed:
    Bill in your national currency and therefore transfer the risk to the other contracting party. This solution is the simplest for a company. However, firms should be particularly aware of the impact this choice may have on the competitiveness of their products / services: a competitor who agrees to invoice in the buyer's currency may be more attractive to the foreign buyer. Insure against this risk to a greater or lesser degree depending on the arbitration you have to exercise between security (minimum or no risk of exchange that you agree to take) and the profitability of the operation (impacted by the cost the coverage you will have to pay). Take advantage of the various hedging instruments offered by the banks: Advance in export currency: this technique allows you to eliminate the foreign exchange risk (for a transaction actually paid at maturity) while financing the payment period granted to your buyer. The sale of forward currencies: you can establish in advance with your bank the price at which you will sell the currencies you receive in settlement. Currency risk is fully hedged provided that the timing coincides with the settlement. The forward exchange with profit-sharing: allows you to partially benefit at the end of a possible favorable evolution of the currency used, while guaranteeing you a minimum price. oThe exchange option: a hedging method that gives you the greatest flexibility to benefit from the favorable evolution of the currency rate. The last part is the most interesting for us as it is the solution the most widely adopted and it involves a lot of FX transactions.
    The forward exchange (futures)
    The forward exchange is an exchange of 2 currencies on a date (the value date) and a traded price (futures). This type of contract makes it possible to fix in advance a price between 2 currencies, and thus to hedge against the FX risk.
    The characteristics of a forward exchange transaction are defined in relation to a spot price (the price used for the spot exchange) for the day's transactions.
    The difference between spot and forward is called "term points". When the futures price is higher than the cash price, it is called "report". When the futures price is lower than the cash price, it is called "offset". But how is the futures price determined?
    Calculation of the forward rate
    (you can skip this to the Back-Office part if you want)
    Futures prices are not quoted as such in the market. For each currency, however, we know the rates of loans / borrowings on different maturities. These are the rates that will be used to calculate futures prices.
    From the point of view of the trader who quotes the transaction, the forward exchange amounts to combining 3 transactions:
    A "spot" exchange in the same sense as the futures transaction
    A loan of the currency purchased over the same term as the futures transaction (the loan repayment flow, a cash flow, coincides with the forward purchase)
    A loan of the currency sold (the repayment flow coinciding with the forward sale).
    The following graph illustrates the reasoning in the case of a forward purchase of the currency D1 against D2. Beware the dotted flows are fictitious and are only there to support the reasoning, only the flows at Value Date are real.

     
    Let's suppose the trader who is quoting the transaction is working on the following prices:
    Spot price D1 / D2: S12 / S21 (which means that the trader buys at S12 and sells at S21)
    D1 rate: t1e / t1p (which means that the trader lends the currency D1, over the period considered, to t1p, and borrows from t1e)
    D2 rate: t2e / t2p
    And that he must quote a forward purchase of an amount M1 of currency D1.
    In order for the repayment of the notional loan of the currency D1 to correspond to this amount, he would have to lend today the amount M'1 such that:
    M 1 = M'1 + M'1 * t1p * N / 36000 = M'1 (1 + t1p * N / 36000)
    Where N is the loan term, in number of days.
    Similarly, the amount M2 paid in the future corresponds to an amount borrowed today M'2 such as:
    M2 = M'2 + M'2 * t2e * N / 36000 = M'2 (1 + t2e * N / 36000)
    and the term course sought is such that:
    T12 = M1 / M2 = (M'1 (1 + t1p * N / 36000)) / (M'2 (1 + t2e * N / 36000))
    We know that the spot price S12 is such that:
    S12 = M'1 / M'2
    So !!
    T12 = S12 (1 + t2e * N / 36000) / (1 + t1p * N / 36000)
    Or
    S12 is the price of the spot purchase
    t2e is the rate of borrowing the currency price
    t1p is the loan rate of the negotiated currency
    And conversely for a forward sale:
    T21 = S21 (1 + t2p * N / 36000) / (1 + t1e * N / 36000)
    Or
    S21 is the spot sale price
    t2p is the loan rate of the currency price
    t1e is the borrowing rate of the negotiated currency
    It's a bit complicated but once you enter the formula in an Excel sheet you do not think about it anymore!
    This means that the futures price, contrary to what one might think, is not an anticipation of what the spot price will be in the future. However, it is based on an evaluation of the value of currencies, via market rates.
    And finally we get to the juicy stuff.
    What is happening in back office ?
    The Back - Office system has the function of materializing the trades negotiated by the trader:
    Vis-à-vis counterparties:
    Emissions confirmation: currency exchange transactions are confirmed by SWIFT MT300 messages.
    Issuing payments: generation of a payment order (MT202) for the correspondent in the paid currency, a notice of entry of funds (MT210) for the correspondent in the currency received. If the counterparty is internal (customer, deal between 2 desks), the payments are made via accounting (debit / credit account).

    The chart below illustrates the flow of information between 2 banks and their correspondents in the event that Bank A sells Currency 1 against Currency 2 to Bank B:

    It is literally a maze of flows of information and payments.

     
    Why did I create this topic ?
    To enlighten all the flows of information and payments banks have to deal with when the FX is involved, and most particularly in the event a B2B relation (International trades).
    Ripple's solutions (messaging + xRapid) hopefully will help circumvent the issues we know.
    I am sure I forgot a lot of stuff, I didn't talk about all I had in mind on purpose, it was a lot to write in a single post, so please be kind.
    Thank you

     
     
  10. Like
    XRPHornets got a reaction from Roaring_Twenties in Navin Gupta @ MINT DIGITAL INNOVATION SUMMIT 2019   
    Brilliant . I love Navin, such a great communicator .
     
    I also love hearing Indians speak English , such an elegant interpretation of the language .
  11. Like
    XRPHornets reacted to Kiir in IMF - Live Stream 04/10/2019 - Money and Payments in the Digital Age   
    I joined Alex's stream cause I could connect tight away.
    He's live and just mentioned Pewdiepie, Youtube streamer with like 90+ MILLION subs is LEAVING Youtube and Twitch for DLive, a blockchain platform for streaming (I have no other info about any of that).
    That's massive for blockchain awareness :O
  12. Like
    XRPHornets reacted to Julian_Williams in TCS (Tata Consultancy Services) BaNCS payment system can now seamlessly connect to Ripplenet.   
    https://xrparcade.com/news/tcss-quartz-enables-banks-payments-systems-to-connect-to-dlt-based-payment-infrastructures-like-ripplenet/
     
    https://www.tcs.com/
  13. Like
    XRPHornets got a reaction from dik in Navin Gupta @ MINT DIGITAL INNOVATION SUMMIT 2019   
    Brilliant . I love Navin, such a great communicator .
     
    I also love hearing Indians speak English , such an elegant interpretation of the language .
  14. Thanks
    XRPHornets reacted to xrpmommy in Navin Gupta @ MINT DIGITAL INNOVATION SUMMIT 2019   
    Starts @1:13:25
     
  15. Like
    XRPHornets got a reaction from Julian_Williams in Send money internationally for free - Fast and free for all Coinbase users   
    I dont think Coinbase would host an Aprils Fools gag on their website.
     
    Remarkable turnaround in standpoint from them.
  16. Thanks
    XRPHornets reacted to LeonidasH in Q1 2019 XRP Report: Laying the foundation   
    With another quarter coming to an end it's always interesting to pause and zoom out. Sometimes we focus too much on price action and daily news and forget to look at the bigger picture. This report focuses on doing just that:
    https://xrpcommunity.blog/q1-2019-report-laying/
  17. Thanks
    XRPHornets reacted to xrpmommy in Q & A with R3 CTOs on corda settler and xrp   
    Starts @ 57:35
     
  18. Like
    XRPHornets got a reaction from invest2lose in Send money internationally for free - Fast and free for all Coinbase users   
    I dont think Coinbase would host an Aprils Fools gag on their website.
     
    Remarkable turnaround in standpoint from them.
  19. Thanks
    XRPHornets reacted to BobWay in Chat: General   
    So many good questions. I'm not ignoring them. Just need to put together a few more spare minutes to answer them properly.
    I'll try to answer the easy, short answer ones first.
    I do know Justin and worked with him at Ripple from the beginning. I like him personally. I was actually surprised by Tron's success. Not because of Justin, but because I didn't know the two were related. Justin told me over drinks in SF that he was going to start a new blockchain and also what the focus was. I didn't think to ask the name at that time. :-)
    Justin is Chinese and I'm Texan. So I know I have some cultural bias in regards to "normal" behavior. I see Justin as quite a good self-promoter. He is working mostly in China among Chinese folks to which I'm sure all of his behavior is culturally appropriate. For my personal taste, he often seems a bit "flashy" or ostentatious in his self promotion. But again, I completely realize that is my own personal cultural bias. So in the end, I am happy for Justin's personal success. I hope he follows through in creating a lot of value for everyone over the coming years. I'm not jumping up and down to go work with him, but mostly because I don't think I would be any good at it. I simply have a different set of skills.
    This is very much like what Coil wants to monetize. Someone forward this link to them!
     
    I don't know any specific plans. I have written a little about Corda Settler elsewhere in these forums though.
    Each company is working to create value in their own way. But "rippling technology" (XRPL & ILP) does tend to tie all of this new value creation together into a single ecosystem. Corda is going to be good at "settling" non-money forms of value, against monetary forms of value. The two are simply inseparable in business. What both ILP, XRPL and Settler have in common is that they assure both parts of a business deal happen in a single "synchronized" (atomic) transaction.
    It makes a lot of sense for R3/Corda to work with Ripple's various "rippling technologies" because they are the leader in "synchronized" monetary transactions world-wide. Their doing so would benefit the RippleNet ecosystem immensely (from my personal perspective).
  20. Sad
    XRPHornets got a reaction from XRPwinning in Matryoshka   
    I respect your reference to  and interest in history , but this is supposed  be a serious forum focused on the rational discussion of XRP and its utility in the global economy . 
    I don’t want to be a forum nanny but can we please cut out the feel good , FOMO posts and concentrate on the facts .
    Or just keep them to the Zerpening club and not the discussion forum.
  21. Like
    XRPHornets got a reaction from TheXRPer in Matryoshka   
    I respect your reference to  and interest in history , but this is supposed  be a serious forum focused on the rational discussion of XRP and its utility in the global economy . 
    I don’t want to be a forum nanny but can we please cut out the feel good , FOMO posts and concentrate on the facts .
    Or just keep them to the Zerpening club and not the discussion forum.
  22. Haha
    XRPHornets got a reaction from LilBender in XRP is Shari'a compliant   
    Great, I look forward to anybody caught stealing XRP getting their hands chopped off.
  23. Haha
    XRPHornets got a reaction from BBS in XRP is Shari'a compliant   
    Great, I look forward to anybody caught stealing XRP getting their hands chopped off.
  24. Haha
    XRPHornets got a reaction from QuizPops in XRP is Shari'a compliant   
    Great, I look forward to anybody caught stealing XRP getting their hands chopped off.
  25. Haha
    XRPHornets got a reaction from LeonidasH in XRP is Shari'a compliant   
    Great, I look forward to anybody caught stealing XRP getting their hands chopped off.
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