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Amigo

What if banks start their own coin? Joel Katz's answer

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I absolutely love this answer from @JoelKatz on a 'challenging' statement that banks will start their own coins.

That is so true. Current bank account values ARE already sort of a digital/virtual coin. Not blockchain based of course but for that goal (internal administration of their clients holdings) that's not really usefull either. Settlement is a different thing though ?.

Ripple is so spot on with its use case ??‍?.

Edited by Amigo

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16 minutes ago, JoelKatz said:

This kind of question comes from the thinking that blockchains are magic and that if you just add them to things they get better. I think there are a lot of banks and related organizations madly trying to figure out where they're suppose to stick the blockchain to make things better.

There is a thread about the MUFG coin: https://www.xrpchat.com/topic/17609-mufg-coin-integrates-ripple. The broader opinion was that this is good for XRP's adoption. I still cannot wrap my head around why there even is anything like the MUFG coin if it does not solve a problem. Why are these people doing it this way then? Is this only for "internal" purposes and XRP is leveraged over the borders? 

 

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They ( Banks) have got two option to transfer money around the globe.First one(current one) ,hot air balloon(swift) ;  second option ,  supersonic jet(XRP).I am sure they will follow logic.

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2 minutes ago, Zareh said:

They ( Banks) have got two option to transfer money around the globe.First one(current one) ,hot air balloon(swift) ;  second option ,  supersonic jet(XRP).I am sure they will follow logic.

Banks following logic!  Pigs will take flight before that happens.

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19 minutes ago, xh3b4sd said:

why there even is anything like the MUFG coin if it does not solve a problem

How to create your own unlimited money printing press in just three steps:

step 1: create your own currency and peg it to fiat

step 2: wait until your currency is widely accepted

step 3: remove the peg

Actually, as Tether demonstrates, you can already use your own money printing press at step 1, just make sure you've setup your company in the Virgin Islands.

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MUFG provides a centralized coin with JPY backing. Other banks could be following this example.
That will allow them to do cross border transfers, and by the magic of speed still reduce the cost for nostro/vostro.
This would also reduce a lot of the risk tied with XRP. 

I agree with JoelKatz, that banks are behind on development now, but as we've seen with MUFG that does not stop them apparently.

Remember, it has never been the goal of Ripple to replace Fiat. 

Edited by Essq

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1 hour ago, JoelKatz said:

I think there are a lot of banks and related organizations madly trying to figure out where they're suppose to stick the blockchain to make things better.

Oh, they CLEARLY know that they need to stick it deeply and firmly in their back-end, but they are too shy to fully commit and just want to experiment a little at first to seem innovative to their buddies.

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2 minutes ago, xh3b4sd said:

No it does not. 

I do not see why not. Granted they might now have a commercially ready solution yet.
In theory they could still use xCurrent to do so right ?

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It wont be easy for banks to agree to their competitors crypto coin and adopt it as their business standard.....ripple on the other hand is a neutral well established company with third largest used coin XRP which is well positioned to be adopted with a usage history.

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so they are "back-end curious" and seem to like it so much they are developing their own intra-coins... that' a sorta' way to see it...

3 minutes ago, Sukrim said:

Oh, they CLEARLY know that they need to stick it deeply and firmly in their back-end, but they are too shy to fully commit and just want to experiment a little at first to seem innovative to their buddies.

 

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Just now, robertbruce said:

so they are "back-end curious" and seem to like it so much they are developing their own intra-coins... that' a sorta' way to see it...

Yeah, it's easier to play around on your own before you insert a third party solution in some of your more sensitive areas. Also it is a big trust issue to let others put technology there that you haven't yet experienced in depth and where you are unsure how your established partners might react.

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Intra bank coins are not an answer to the issues XRP is addressing such as fast settlements without counterparty risk.....there needs to be an agreed upon coin for that which wont be easy to settle on considering there is XRP already....any other views on this?

Edited by andyg1978

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