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Tehol_Beddict

Bank of Japan Speech, SBI Ven Capital!

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12 minutes ago, TexasHodlem said:

In case the reading assignment wasn't heavy enough, here's the Project Stella report that's referenced in the BOJ report: https://www.ecb.europa.eu/pub/pdf/other/ecb.stella_project_report_september_2017.pdf

While I don't contest the relationship between SBI and Ripple, it's a stretch to say that the BOJ is close to endorsing Ripple officially. Within this set of documents, the field is narrowed from a list of DLTs by:

(1) indication that a consensus algorithm must have Byzantine fault tolerance (since other referenced algorithms lack finality)

(2) mention of international remittance as a clear use case for DLT, as opposed to domestic use cases, which provide marginal benefits

The BOJ is providing official guidelines, which they expect the banking industry to utilize in selecting a DLT to adopt. They even went so far as to suggest the need for a universal, international solution to avoid a fractured system with proprietary block-chains that cannot interconnect. All of this is outstanding news for Ripple, but I don't view it as evidence that they've won the BOJ's favor.

And of course it’s not an official endorsement. Central Banks are not likely to endorse anything... But when your entire banking system is behind Ripple and it also aligns with you monetary policy goals...?

He compares it to the creation of the internet. He refers to the hub and spike model. He talks about cryptocurrency (no other ledgers have these). He talks about private vs. public DLT and the ideal solution being in between. I mean... It screams Ripple... and why wouldn’t it when the entire country uses Ripple, SBI owns 10% of Ripple and 60 % of SBI Ripple Asia and SBI has collaboration of 80% of country’s banking power?

These are central banks!!!! Analysts literally look at EVERY SINGLE WORD to try and predict where interest rates will go in the future and whether they are “hawkish” or “dove-ish”... and you want to tell me this doesn’t scream Ripple?!

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I'm just trying to give correct facts here,  if you see a direct relation with ripple ok but why not see a direct relation with a competitor then?  

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The BoJ and ECB teamed up late last year on 'Project Stella', investigating the use of DLT for financial market infrastructures. The pair began with their RTGS systems, spending several months replicating the liquidity saving mechanisms of BOJ-NET ad Target2 in Hyperledger Fabric.

https://www.finextra.com/newsarticle/31038/ecb-and-bank-of-japan-conclude-dlt-not-ready-for-rtgs-systems

 

I think it's just a general document.

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2 hours ago, kenrino said:

I'm just trying to give correct facts here,  if you see a direct relation with ripple ok but why not see a direct relation with a competitor then?  

https://www.finextra.com/newsarticle/31038/ecb-and-bank-of-japan-conclude-dlt-not-ready-for-rtgs-systems

 

I think it's just a general document.

This is not the document in discussion. As already mentioned, this is mentioned in the relevant documents but COMPLETELY irrelevant as it is focused on the question of adopting a central bank digital currency.

Quote

In light of the emergence of new technologies like blockchain and DLT, some argue that central bank should take advantage of these new technologies and issue central bank digital currency (CBDC) as a substitute for banknotes. Others suggest that a central bank should consider applying those technologies for central bank deposits. At this juncture, the Bank of Japan does not have any concrete plan to introduce CBDC. Neither does it have an immediate plan to apply those technologies for its operating system. 

It was joint research done by Japan and the EU, which they decided not to put into action at this time, is specifically excluded in the speech, is stated as not being put into action in the discussion by the Japan Banking Association and is completely irrelevant.

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