Thanks Tiny, I may be naive and as stated no background in finance but her whole argument is that Nostro/vostro accounts hold no locked funds. Then this :
Nonetheless, nostro/vostro balances are on average very high. This brings us to the role of XRP. If, instead of funding nostro/vostro accounts in the settlement currency before making payments, banks used XRP as a bridging currency, would this eliminate large balances in nostro/vostro accounts?
If practically instant payment is available, wouldnt this negate the need to store the funds in N/V
A simple obvious answer to her question would surely be yes. XRP (faster frictionless trans) would facilitate a more efficient system that required less stored fiat.