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KarmaCoverage

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KarmaCoverage last won the day on December 1 2018

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  1. CB SWAPs, @Wandering_Dog had some good comments on this a few days ago, which is why this caught my eye.
  2. I keep seeing CB related talk pointing out that digital dollars/wallets would enable CBs to better inject liquidity into parts of the economy which private intermediaries are not well suited to connect CB stimulus. This is more about the CB to CB SWAPs, and euro dollar institutional level. I also keep seeing folks talking about the decline of the USD as the only global reserve. What is behind these moves? To understand recent events, it is important to consider both sides of the FX swap market – those wishing to obtain dollars and those willing to supply them. On the demand side, institutional investors (insurers, pension funds and other portfolio asset managers) play a key role. Such investors have obligations in domestic currency, but they hold a globally diversified portfolio, with a substantial portion denominated in the US dollar On the supply side, dollars are provided by banks and other financial intermediaries, who source their dollars in global capital markets. However, in the decade following the GFC, banks that provide such hedging services have become a smaller part of the overall financial system, reflecting narrowing lending margins due to low interest rates, as well as tighter regulation
  3. Our CTO has a history working in medical companies, as do our attorneys. In one meeting, they all started laughing because the financial situation/service we were discussing, if done wrong, could cause material harm to the users. Now they weren't laughing at causing harm, they were laughing because both the legal and tech requirements were essentially nothing... as compared to medical projects they had worked on. That said, I'd suggest you look towards Enigma.io I'm saying that because they have ZKP, and the ability to make markets on (health) data, between two parties where one needs to share private data (healthcare users) with another party (insurance inc) who has the ability to process the data creating Information... without the raw data being disclosed to the party processing the data. If I remember correctly, it was the HIPAA laws that called for more effort than investment laws.
  4. There was the FinCEN fine of $750k, when they forced RippleTrade to shut down. I think because it meant that Ripple was facilitating public use. You can find any public SEC filings here. The q1 foot notes could have some interesting legal and accounting wording. Not only the SEC, but GAAP is also going to have to make a determination regarding how this should be accounted for.
  5. I didn't get the sense that was it. The guy was very transparent with me, and I was asking questions about their financial engineering and business model. That usually involves corporate strategies to gain a competitive advantage, that only the executive level knows. Cant find the guy's number after my move/divorce all my stuff is "somewhere", or maybe trashed. Will sesrch my email and see if there is anything there. They were PayPal guys, trying to facilitate market making for gaming digital goods. That was the real world use case, not Lending alone. Maybe they are making markets between LBA and the gaming assets, like XRP as a bridge currency, but with Cred is the marketmaker? Idk.
  6. @Malloy the crux of your idea is correct. same idea as printing more shares of a company, each new share represents/gives rights to a diminishing percentage of the total balance sheet. @Skippy is also right, the core idea, in currency terms is called inflation, aka "monetizing the expense", which is effectively a progressive tax on the owners of the existing money supply.
  7. XRP and RippleNet are both still very young. I think on a human lifetime scale, I'd say they are both about 5-7 years old (literally and figuratively). Like most humans they will not reach their productivity stage, when they create a lot of value for others, until they hit at least "late 20s/early 30s". I'd expect it to take another couple 2-3-5 years for the network to really gain run away traction. One of Brad's phrases was crawl > walk > run. I think the network is around the end of the crawling growth stage. I see nothing that worries me about Ripple or XRP. If anything this virus situation is shining a light on the global monetary system, and RippleNet is right there, as the hot new young monetary actress on the global stage. I truly dont see anything to worry about re Ripple or XRP. This public market downturn was already expected, although the virus has both served as both a trigger for a correction, and exacerbated the correction's speed.
  8. Why would anyone with half a clue give someone else their secret key? I do t understand how people get scammed. Sorry I didn't read the article, I just dont get how someone can sign a TX without the secret... cold wallet anybody 🤪
  9. The part where 40% gets burned, is a kin to a stock buy back, where the remaining share holders (coin holders) gain a larger percentage of the total value, or outstanding shares/coins.
  10. I honestly have no idea if 4 trillion is enough. My hunch is that they will limp in with stimulus, then realize "holy sh*t!" and do more. Same pattern we saw unfold in '08. The key think I see that is different this time than in '08 is that this time, it is Mainstreet that is having a liquidity crisis, like households. Then small & local businesses will experience a liquidity crisis, this will have ripple effects right back to the household level. So i'd expect the situation to sort of start to "look better" in 9-12 months, then reverb for another round of "oh crap, this isn't over yet" which may last 6 months longer. Last time, the banks had the liquidity crisis, so while politically unpopular, it was a relatively "no brainier" for the Fed to inject liquidity into the baking sector. This time they are floating the idea of $X000s/mo to each household, deferring loan payments on mortgages, postponing evictions, etc. Which would seem to match the stimulus to the location in the economy experiencing the liquidity shortage. Surly all this will roll up to the commercial banks at some point, then the Fed may be able to more directly stimulate a banking liquidity issue. I think the reason the Fed is buying bonds, is to prevent a snowball effect occurring, whereby as bonds fall, more folks need to sell bonds to plug their personal liquidity issues, which drives the bonds value down and rates up (applying breaks to growth), which drives more folks to then be required to sell bonds to plug their personal liquidity issues... and so on. IMHO the Fed is just trying to put a floor on the market for all the market participants to stand on and not panic. https://youtu.be/F0r2X0FmZtg
  11. I agree with you, and positive interest rates would tend to exacerbate this issue. Given inflation and current rates on savings, I think in "Real Terms" rates are already negative. I also agree, was thinking about this earlier. I think with the idea of a Narrow Bank, where Fractional Reserve business methods are not deployed this is less of an issue. However the end user citizen would need to incur fees to consume the Narrow Bank's fully backed services. Check that video link above, I tried to explain the difference between a Commercial Bank doing fractional reserve, and a Narrow Bank, and how the market dynamics between CBDC & Bank Deposits & Narrow Bank deposits would work.
  12. I will assume you meant to say, "have no reason to"? In that case, you reminded me of the ancient Egyptian currency, the Ostraca. It was after the Romans conquered Egypt that the sustained period of economic stability ended, and the Romans instituted a positive interest rate currency. Positive interest rates incentivize saving, not investing in building new productive assets, unless the expected return is higher than the rate paid for savings. Negative interest rates incentvize investing in real long term assets.
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