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Fundamental: value of XRP coin and Ripple


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Hi!


Discussing ripple, I gave the example of the 50 million dollars recently transferred to Japan. Cost only 5 seconds and 30 dollarcent. So for me, that proves that ripple can indeed speed up bank transfers compared to swift and conventional settlement procedures and technologies.


Then, one of my colleagues stated that banks have no incentive to shift to ripple as an intermediate coin. Because for banks, the 5 days a swift transfer takes is actually when they make the profit (keeping that money in the books)... So quick, sub 5 seconds payments wouldn't be something that's worthwhile for a bank.

Still, this application of ripple / xrp is the most mentioned by subject matter experts. Are they wrong? Where do you stand on this?

 

Thanks and best regards!

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13 minutes ago, susli said:

The customers who actually provide money... 

It's a really really small portion of customers who do frequent international payments. For most customers, 5 days is fine.. I can imagine banks offering a "fast lane transfer" for a slightly higher fee... Or do you think eventually customers will choose not to go through banks? 

In any case, I will be surprised if this business case gets widely adopted in 2018...

Now, ripple as payment option for the third world, I guess that does make sense.. 

Edited by kkoenen
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17 minutes ago, kkoenen said:

Hi!


Discussing ripple, I gave the example of the 50 million dollars recently transferred to Japan. Cost only 5 seconds and 30 dollarcent. So for me, that proves that ripple can indeed speed up bank transfers compared to swift and conventional settlement procedures and technologies.


Then, one of my colleagues stated that banks have no incentive to shift to ripple as an intermediate coin. Because for banks, the 5 days a swift transfer takes is actually when they make the profit (keeping that money in the books)... So quick, sub 5 seconds payments wouldn't be something that's worthwhile for a bank.

Still, this application of ripple / xrp is the most mentioned by subject matter experts. Are they wrong? Where do you stand on this?

 

Thanks and best regards!

The nostro vostro money is considered dead money because the banks cant use it besides it being leveraged for cross border payments.  Big disadvantage to banks.  They could use that money instead to make more money.

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I think the previous post has done enough to squash concerns about banks ultimately choosing to adopt XRP. I'll add one small thing.

Did you know that small banks pay larger banks to source liquidity for cross border payments? I can assure you, small banks don't like paying for that. Such a practice will not last when RIpple is done.

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15 hours ago, kkoenen said:

Hi!


Discussing ripple, I gave the example of the 50 million dollars recently transferred to Japan. Cost only 5 seconds and 30 dollarcent. So for me, that proves that ripple can indeed speed up bank transfers compared to swift and conventional settlement procedures and technologies.


Then, one of my colleagues stated that banks have no incentive to shift to ripple as an intermediate coin. Because for banks, the 5 days a swift transfer takes is actually when they make the profit (keeping that money in the books)... So quick, sub 5 seconds payments wouldn't be something that's worthwhile for a bank.

Still, this application of ripple / xrp is the most mentioned by subject matter experts. Are they wrong? Where do you stand on this?

 

Thanks and best regards!

You're right.  Big banks make money off the float.  Basically it's their business model especially the last couple decades.  However-- now that Apple, Paypal, remittance companies (WU, Moneygram, Transferwise), smaller banks, Amazon, Google, Facebook are all in the digital payments (value transfer) system, AND the expectation of the global population is turning towards instant payments with low fees do you think Big Banks can continue to operate on a 50 year old dinosaur system of 3-5 days and high costs to settle money?  Of course not.

They have no other choice but to adapt to the modern age along with the tech companies who are eating their market share.  No question about it.  That's why here in the U.S., the laggard in all of this, the Federal Reserve has set up the "Faster Payments Task Force".  Of course, they are behind the times- with almost all of Asia and a good part of Europe and South America getting on board quickly- but there is a keen understanding, even here, by those in power that they MUST keep up or wither.  And they will not wither...They have no choice.  The world is moving ahead with or without them. 

The movement to 'instant settlement' and cheap settlement' is not a hypothesis any longer.  It's coming into use now, in 2018, real time, and there will be a seachange in coming months with big banks and big enterprise alike.   They ALL want to save money, not to mention stay in business, and continue to be competititve.  The slower adopters will wither no doubt, but the largest of institutions (banks, corporations) are completely onboard with digital settlement, however slow they move, but we can see this adoption daily if one does any cursory amount of research.  It still takes some time for the adoption to occur, but it IS happening by the day, TODAY,  in this very new and young market. And the more time large enterprise spends in keeping up the more money they lose versus competitors/earlier adopters.  Period. 

The remittance market is HUGE.  You mention so-called "third world" countries.  Well those third world countries, China, India, all of Africa may be considered third world, but they also constitute most of the world's population and remittances.  Billions and billions of families across the world.  There are also millions of residents in the US alone who send money to their 'home' countries daily.  This is no small affair.  It's the largest transformation of economic activity since the stone age where people traded sea shells or whatever.  Anyway, one can choose to understand this or not, but for those who don't all it means is that they will be laggards.  But ultimately all of us will be part of this new financial system taking place live, today, real time, 2018.  Best...

Edited by xrphilosophy
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2 hours ago, xrphilosophy said:

You're right.  Big banks make money off the float.  Basically it's their business model especially the last couple decades.  However-- now that Apple, Paypal, remittance companies (WU, Moneygram, Transferwise), smaller banks, Amazon, Google, Facebook are all in the digital payments (value transfer) system, AND the expectation of the global population is turning towards instant payments with low fees do you think Big Banks can continue to operate on a 50 year old dinosaur system of 3-5 days and high costs to settle money?  Of course not.

They have no other choice but to adapt to the modern age along with the tech companies who are eating their market share.  No question about it.  That's why here in the U.S., the laggard in all of this, the Federal Reserve has set up the "Faster Payments Task Force".  Of course, they are behind the times- with almost all of Asia and a good part of Europe and South America getting on board quickly- but there is a keen understanding, even here, by those in power that they MUST keep up or wither.  And they will not wither...They have no choice.  The world is moving ahead with or without them. 

The movement to 'instant settlement' and cheap settlement' is not a hypothesis any longer.  It's coming into use now, in 2018, real time, and there will be a seachange in coming months with big banks and big enterprise alike.   They ALL want to save money, not to mention stay in business, and continue to be competititve.  The slower adopters will wither no doubt, but the largest of institutions (banks, corporations) are completely onboard with digital settlement, however slow they move, but we can see this adoption daily if one does any cursory amount of research.  It still takes some time for the adoption to occur, but it IS happening by the day, TODAY,  in this very new and young market. And the more time large enterprise spends in keeping up the more money they lose versus competitors/earlier adopters.  Period. 

The remittance market is HUGE.  You mention so-called "third world" countries.  Well those third world countries, China, India, all of Africa may be considered third world, but they also constitute most of the world's population and remittances.  Billions and billions of families across the world.  There are also millions of residents in the US alone who send money to their 'home' countries daily.  This is no small affair.  It's the largest transformation of economic activity since the stone age where people traded sea shells or whatever.  Anyway, one can choose to understand this or not, but for those who don't all it means is that they will be laggards.  But ultimately all of us will be part of this new financial system taking place live, today, real time, 2018.  Best...

Strange how the vast majority of people around the world have no idea that this is happening NOW. It seems as though 99% of people and companies / banks - except for the most visionary tech companies (which are now worth tens of billions) - resist change to a certain extent; they are uncomfortable with it and would rather latch on to the status quo for as long as they possibly can. The difference now is that technological advancement has exploded. We are just beginning to feel its exponential growth, and this has probably disrupted the operations of banks specifically far faster than they expected. Right now, they are just scrambling to catch up. 

Ironically, I think those bitcoin anarchists and their idealistic rhetoric will actually drive banks to adopt XRP faster, because they will fear a rapid transition toward decentralized networks where people will grow more and more wary of financial institutions and may (in the medium term) pull out their money from banks altogether if they feel they are being robbed (high transaction fees, etc.). So in a sense, we may be heading toward a future where banks will say: "Okay, okay guys... most coins out there are **** because we can't really allow for anyone to send money to anyone (money laundering risk, drug cartels, etc.). So we will adopt regulated technology such as Ripple software and XRP to make our services much cheaper, and everyone wins. Okay? Everyone happy? Great."

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