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XRP High Price & Stability before Bank Use

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Something I'm still not understanding is the need for XRP to be high in price before being used by banks. Why is it cheaper for banks to use XRP for cross-border remittances when the price of each XRP is $100 vs $3? I know it has something to do with liquidity, but I'm not understanding it. 

Also, what do you think the approximate Minimum Price of XRP should be for, let's say, 50% or more of banks using the Ripple platform to WANT to use XRP for remittances?

Lastly, how Stable does XRP have to be for, let's say, 50% or more of banks using the Ripple platform to WANT to use XRP for remittances? I assume the price of XRP shouldn't fluctuate more than +/- 3% per day for banks to feel comfortable substituting XRP for their current nostro/vostro accounts. 

Please enlighten me. Thanks! 

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11 minutes ago, xrp_py said:

Something I'm still not understanding is the need for XRP to be high in price before being used by banks. Why is it cheaper for banks to use XRP for cross-border remittances when the price of each XRP is $100 vs $3? I know it has something to do with liquidity, but I'm not understanding it. 

Also, what do you think the approximate Minimum Price of XRP should be for, let's say, 50% or more of banks using the Ripple platform to WANT to use XRP for remittances?

Lastly, how Stable does XRP have to be for, let's say, 50% or more of banks using the Ripple platform to WANT to use XRP for remittances? I assume the price of XRP shouldn't fluctuate more than +/- 3% per day for banks to feel comfortable substituting XRP for their current nostro/vostro accounts. 

Please enlighten me. Thanks! 

Great question.  Following... 

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5 minutes ago, Reiko said:

Here is a screenshot i found on twitter explaining why it has to be a high value for banks.

Screen Shot 2017-12-23 at 21.46.19.png

So it's all about stability, not necessarily higher prices. If there were 100 Trillion XRP, then maybe a $.10 price would be enough for stability vs 100 Billion XRP at $100 that we're aiming for now. However, even at high prices, there is still volatility. If you were to ask anyone 3 years ago at what price they thought bitcoin would be "stable enough" to not have 5% to 15% daily swings, most would have agreed that a $20k per bitcoin price would do the trick. 

What I'm trying to say is that it could be a long time before XRP price stabilizes to a +/- 3% average daily swing. I guess it all depends on how quickly RippleLabs/ILP/XRP can spread their tentacles across all the biggest use cases before we can see XRP prices stable enough for banks to replace their nostro/vostro accounts with XRP. 

But at the current pace that Ripple Labs is making moves, it wouldn't surprise me if we see stable XRP prices within 24-36 months, at a probable XRP price in the $Hundreds or maybe even $Thousands. 

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4 hours ago, xrp_py said:

Also, what do you think the approximate Minimum Price of XRP should be for, let's say, 50% or more of banks using the Ripple platform to WANT to use XRP for remittances?

That will be crazy high. If you end up with 10% of SWIFT, then you go to a 20usd value. BUT, without speculation.

 

3 hours ago, xrp_py said:

What I'm trying to say is that it could be a long time before XRP price stabilizes to a +/- 3% average daily swing. I guess it all depends on how quickly RippleLabs/ILP/XRP can spread their tentacles across all the biggest use cases before we can see XRP prices stable enough for banks to replace their nostro/vostro accounts with XRP. 

No, don’t worry to much about price swing.  Cause currently it is way worse. Banks pay high fees to liquidity providers and or hold massive amounts of nostro accounts.

What some people tend to forget, not perse on this chat, but that XRP does real-time settlement. So less then 6 sec to lower any counterpark risk. Time covers the volatility, but also days of volatility in currencies is something banks are not happy with. XRP is really a game changer

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