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http://www.bbc.co.uk/news/business-42784384 Probably one for the 'Press' section but as a Newbie, I've got to wait to post! Interesting to see they are trying to shake up the market a little... Essentially implementing a form of KYC regs as in the US. So no 'Ban' as such... Or at least not for the honest investor!
"But XRP works with Banks, not against them!" I lost track of how many times I heard this siren cry from the bitcoinist hoards on bitcointalk back in 2013. Of course, all it did was convince me to be more sure of my XRP investment rather than doubtful. But you'd have to know something about my personal investing history in crypto up to that point. I was not a newbie by then; I'd been burned twice. And both times I learned very key, very painful, investment lessons when it came to crypto-currencies: 1) Never sell on a downturn. 2) A crypto investment with solid use cases always comes back stronger than it was before My Personal Experience I had learned this lesson from initially investing in Peercoin, then losing faith in it before it broke 15 cents. It soon went to $3 and is now listed for $1.60. That would have been roughly a 2,000% return for me if I would have just shown a little fortitude. Remember this was 2013 - the wild west of crypto was just being born at that point. I then said "no more alt coins" and invested back in bitcoin. It was approaching ~ $120 at this time. I remember thinking, "I don't think it can go much higher than this, but I guess I can trade it on a day-trade or swing-trade basis and see if I can make some money." My success was limited. I made some money, I lost some money. And then came XRP The bitcoin purests on bitcointalk were vicious to the new company, "Ripple Labs." They saw XRP as a complete replacement for Bitcoin, and a competitor that could beat Bitcoin in every way. In addition - probably this is was the worst point for some of them - it could work with the existing banking and ForEx infrastructure, not against it. They saw a threat to their profitable BTC holdings, and they attacked Ripple Labs and XRP mercilessly, spreading lies and FUD at a scale that was truly remarkable. So Why Were Bitcoinists So Afraid? Because math. That's the short version, but I know you're here to dig a bit. Basically, banks can use XRP to lower their ForEx transfer and settlement costs. How much those costs can be lessened depends on several factors. (source: https://ripple.com/insights/ripple-can-help-banks-evaluate-their-cross-border-payment-costs/) One of the services that Ripple provides is to work with a bank to analyze their costs and show them how using XRP can lower their transaction costs: In addition to lowering the transaction costs, enabling and integrating with the RCL allows banks and financial institutions to move into new markets if they so choose, as well: (Source: https://ripple.com/files/xrp_cost_model_paper.pdf ) So How Big is Banking and Forex? Yeah, super-big. If you're a newbie, here are those numbers: Current volume with SWIFT: According to this document (source: https://www.fincen.gov/sites/default/files/shared/Appendix_D.pdf ) from the US Treasury, SWIFT handles about $5 trillion per day, or given about 250 business days per year, about $1.25 quadrillion dollars a year. Conservatively, let's say Ripple manages to convince only 1 percent of those banks to use RCL. Remember, this is ONLY ONE use case for XRP, and we're estimating that they only get 1 percent of SWIFT's share. Here's the result: .01 X 1,250,000,000,000,000 X .01 = $12.5 trillion dollars worth of transactions per year! So Banks Would Only Use XRP For ForEx? As big as ForEx will be for XRP, that's not even close to all of it's use cases. For example, it can support confidential, anonymous transactions. source: Ripple has pointed out other high-frequency areas where integrations with RCL and XRP can benefit Financial Institutions: (source: https://ripple.com/files/xrp_cost_model_paper.pdf ) When somebody asks you which crypto-currency is the right choice for Banks and Investment Bankers ... well, you know the answer now! XRP
Is there any negotiating room in the big, big room of finance to accomodate both seemingly opposite groups into a "frenemy" or coopetition model that works for both as each tries to change the way international banking is done?