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About Montoya

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  1. The USD is not pegged though. It has a free floating exchange rate. My point being that XRP needs to have a floating exchange rate to be useful for market making. Otehrwise it cannot expand and contract with demand.
  2. Pegging the price of XRP would make it worthless as a bridge currency. It would create the same distortions as price setting any commodity.
  3. I can see the world definitely wanting to shift away from USD hegemony for various reasons. And I am familiar with the role of SDR. I think it would be greatly beneficial. But, once again, it is not governments who will be providing liquidity in the Ripple model, it is commercial market makers. If we have XRP and USD cryptos competing, I don't see people preferring a less liquid asset as a bridge. Obviously this could all change very quickly, and if that is the argument that most of you are making, then I can understand your point. But, if we assume the dollar maintains its preferential place
  4. Our money is NOT currently digitized though. I think that is one the biggest misconceptions here. What IS digitized in our current system are bank IOUs. You trade your physical dollars (which act as assets) in exchange for an IOU from whatever bank you utilize.
  5. It would need no rails. That is the whole point. What rail does bitcoin ride? It rides on the blockchain. A USD crypto would do the same. The Federal Reserve would control the blockchain as you mentioned. A fed ledger would not need to support philippine pesos either, or any other currency to be of use as a bridge currency. All that would be needed is someone in the philippines who has a local bank account and wants to buy USD crypto in exchange for pesos (ie market maker). It would be no different than buying bitcoin.
  6. A good point. But if a crypto USD existed, would they rather hold that than XRP?
  7. Wouldn't this exact thing be possible though with a US crypto? The only counterparty risk with such a coin would be the US gov. the same as a physical greenback. No pile would be needed at the other end because the US dollar is accepted almost universally. The liquidity available in such a case would likely far outstretch and local XRP markets.
  8. I agree with you that other nations dislike the U.S. dollar being the world reserve currency. I also agree that the U.S. stranglehold is being eroded by the Triffin paradox. But the problem is this...it isn't nations who will be making markets, it is traders. They will ultimately decide which currency is the most beneficial for bridging. Yes, govs can affect influence on this, but only to a point. At the end of the day, people keep investing in the dollar, they keep buying US debt, not because they love it, but because every other currency and bond somehow manages to be even worse. Down the ro
  9. Ok. But how? Everyone keeps assuring me that it will all work out, but no one is explaining it. I suppose I could comb through the video link provided to the SWELL conference, but it is an hour long. Can't one of you just explain why it wont affect the XRP use case in the way I mentioned? Since ostensibly you have watched it?
  10. What do you think a bridge currency is if not a currency (most) everyone will accept? I think you are confusing a debt instrument and an asset here. Money in a bank account (our current system) is a debt based system, and likely a completely different animal from what a crypto $ would be. A crypto $ would be analogous to a physical greenback, meaning it would be a bearer instrument. While technically greenbacks do have counterparty risk, ie: the US gov, in practice they are treated by users as if they have no counterparty risk, so functionally they perform as if they were an asset. This is com
  11. The physical U.S. $ (not the current digital representations in bank accounts) is, for all intents and purposes a "nation neutral digital asset". A crypto dollar would be analogous to that. You seem to be positing that there would be more people, in more countries, willing to accept XRP than would accept crypto $. Do you think that is realistic? In your example, how would trading your E-Yuan for XRP be any better than trading it for US$ crypto? Wouldn't the US$ crypto be likely to be accepted in more places and by more people than XRP? Wouldn't it therefore be a more useful and sensible go-bet
  12. But why would any liquidity provider want to use XRP? Rather than US$ crypto? If the dollar is a cryptocurrency, then it is as good as a green back. It is a bearer instrument, which means the only counter-party risk is the U.S. government. Most people seem to treat that risk as non-existent. For practical purposes, a U.S.$ crypto would essentially be counter-party risk free.
  13. But why would anyone conduct forex with XRP as a go-between instead of say, a crypto dollar? Especially when a crypto dollar would instantly have magnitudes more liquidity and be accepted pretty much in every country on earth. It would simply swamp any XRP corridors.
  14. From the sounds of it, China will be releasing a crypto-yuan in less than a year. The US Fed has announced that they, too, are working on a crypto-dollar. My question is this: with the impending availability of state backed cryptocurrencies, is there any role for XRP? From an ideological perspective I can see the value of wanting to hold a non-state-controlled asset, but most people don't care about ideology and have no problem with state monetary control. From a purely business perspective, how can Ripple be expected to compete with the liquidity that governments can bring to bear in their re
  15. It would possibly be a criminal act for Ripple to do this as it would violate their fiduciary responsibility to shareholders. It is mathematically not in their interest to do so. They would be losing more in market cap than they would stand to gain in any increased value. It would essentially be a wealth transfer from Ripple to other XRP holders.
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