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That is not "the idea" at all. N/V accts were one of the... and they no longer count towards reserve capital. It's just the way it is post Basel 3, I guess Basel 2 allowed it. The main idea was that there is trillions of "dead capital" sitting in these N/V accounts. Now that those balances dont count towards Reserves, the money needs to earn it's return via TX fees or something, otherwise it is becomes "dead". You were asking for Proof this problem existed. I simply pointed to global banking regulations as evidence, we dont regulate things that dont exist. FYI, banks can do C

They dont write regulations for problems that dont exist. Pre Basel 3, N/V balances contributed to a bank's Reserves, thus increasing the amount of money they can lend out, thus increasing the bank's leverage. After the crash, they reduced the amount of leverage that is legally allowed. Then banks starting pulling back their Nostro balances, which has been driving a reduction in the Correspondent Banking network's ablilities.

Basel 3 is global banking regulation.

I did... it was just a few years ago I just didnt write an academic paper about it, because yeah. If I remember right Basel 3 made the balances that banks hold on deposit at other banks to support their inter-bank clearing & settlement, aka "Nostro" accounts... no longer counts or contributes to their Capital Reserve. Thus the money is "dead".

No, I looked at downloading it, but then got distracted. I guess its a thing now though, so I should go ahead and do that.

Well, nobody has engaged in any meaningful discussion on the prospect. Sure Flare can do more sophisticated business logic than XRPL can (it's purpose), but I think being able to do things like Options on XRPL creates a desirable base layer/ledger. Upon which more sophisticated logic can be built. I'm not sure exactly where the line should be drawn, in terms of what should/shouldn't be on XRPL vs Flare but Options Settling on XTPL seems close enough to the Settlement Layer to be considered... if doable I made the post in an effort to fact check my thinking against the community

Yes, I even had a couple phone calls with folks I assume are in here. It definitely peaked my interest. My conclusion was that it is not as fully developed enough to be a usable tool. I'm not sure yet, need to read more, but I'm leaning towards "maybe Flare can provide Distributed Business Logic". Hooks would likely make my Options on XRPL even more easily doable. My concern is that there is a need for the end of a foundational TX layer (XRPL), and the begin of the business logic / smart contract layer.. and XRPL should not try to be all things to all use cases.

Nailed it

You are correct, it is an idiotic problem to be solved. You need to do more research

We are moving from a single USD Global Reserve Currency (centralized) towards a (decentralized but not distributed) Global Monetary Infrastructure. The phrasing you hear is "A Multi-Polar World", which basically means that the global monetary pie will be dominated by several Global Reserve Currencies (USD, EUR, JYP, etc) I would have put XRP in that list, except that it is not a CB liability, like a CBDC would be. So inter-connecting those CB liability currencies (digital or not) and this has the potential to place XRP in the role of being a Global Monetary Common Denominator. Mathematic

Selling out to the Greater Fool. I've never had any BTC, and even though I could personally make some capital gains, I would feel like it was dirty money because my "profits" are not earned from doing anything, other than ripping off the Greater Fool.

I'd be interested if anyone in here has time to understand this idea about creating an Option on XRPL without a smart contract. Alright, this is going to be quick and dirty, but I think an "Option" of sorts can be made directly on XRPL without the need for another smart contract platform. You need a few "things" to design the business logic (smart contract) for an Options contract. You need a way to account for Time, and Contract Expiration. (see Escrow & Checks amendments) You need a way to enforce execute an "in the money" option at or before the Expiration. (see

I like @galgitron , sometimes his writing style is a bit aggressive, but in crypto with all the hyper aggressive BTC maxies, I think that is a reasonable tone. I agree that Bitcoin will eventually die it has no feature set other than "moving BTC between wallets"... XRPL has so many features that I wrote the other day that I think you could create an Option for XRP on XRPL without an external smart contract platform like Flare and their Trustless Gateways. Financially (ignoring the tech innovation), it is a Ponzi scheme. The defining characteristic is that the only way to get y

@fedlope Excellent post, and you are getting at the root of some of my concerns at the systemic level. I wrote a while ago about how Ripple Inc could use an XRP LoC to solve for this... This is from back in 2017 when ILP first started, and PayChan took over for the SusPay methods. This is also from the beginning of the thoughts from the series I wrote which concluded with How xPool (there is one error in the chart if I remember right I never fixed it ) The key insight here is that Ripple Inc Is already in the position of being exposed to the downside risk of holding

It's the Automated aspect that causes me the most consternation. There is a reason Public markets have circuit breakers. One of the "let's face it, it's reality" things with Ripple... is that just like having a CB "print money"... for the reason of adding some elasticity to the money supply, Ripple's XRP inventory bias XRP LoC & other methods gives XRP suppley elasticity. .. which creates (the main goal) of a higher degree of Resilience at the systemic level. Let's face another reality, regarding the value of XRP, as well as pretty much anything else that exists; a cow, a busines