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Dutch central bank take on Ripple in the near future

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Just amazing news.

https://www.dnb.nl/en/binaries/Annex to the Vision on innovations in the payment system_tcm47-332794.pdf

Quote

Complexity of infrastructure 

Another important supply side factor is the complexity of the infrastructure. In the current situation in the Netherlands and Europe, that infrastructure is made up of many different parties and components, making it difficult for a single provider to bring all parties together and get things done. The problem is exacerbated by the international nature of the (European) payment market, with operators in other countries often being involved in processing Dutch payments, for example.11 To date, innovations can often only be used at national level; cross-border solutions are (still) rare. This can mean that similar solutions developed in different locations are incompatible with each other, leaving the European payment market fragmented. One exception to this are innovations from card companies such as MasterCard and Visa, whose international character means they do create solutions that can be used for cross-border payments. This means, for example, that contactless debit cards issued in the Netherlands can also be used in other countries. Owing to the complex infrastructure, initiatives are mainly concentrated at the ‘front end’ of the payment system. That complexity makes innovations at the ‘back end’ more difficult to implement, though it is precisely in the area of infrastructure that innovations could genuinely improve the payment market. An example would be real-time retail payments: if payments could be made and received in real time, this would change the payment landscape significantly (see also 4.2). The Ripple network protocol12 (see Box 3) is an example of an innovation that could contribute to that change by enabling banks to use this infrastructure to facilitate real-time payments.

 

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Guest

Interesting find and post. Questionable to say DCB are "taking on" Ripple solutions. But it's great see Ripple identified as cross border payment solution. The points about fragmentation and complex infrastructure are key. As more institutions get on board with Ripple the snowball will grow!

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Bitcoin already provides 'cross-border' solutions...

SWIFT is a dinosaur business model which is already replaced... which is why it is hugely limiting for Ripple to partner with a failing banking business model. 

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6 hours ago, MaxEntropy said:

Bitcoin already provides 'cross-border' solutions...

How would you characterise the risk that Bitcoin governance poses, from the point of view of any bank or financial institution looking into such solution?

Edited by Socrates

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@Socrates

Good question... I don't have an informed view on this other the following:

  • peer to peer is preferable to funding the middle men... Yes, it is true that the miners can be co-opted. Yes, it is true that Satoshi expected all nodes to mine and not specialize. I suspect that most solutions will be co-opted, but with peer to peer, WE can chose when to transition to other solutions. So I have technologies for decentralized exchanges and bridging, PolkaDot. The vision leaders at Ripple do not understand this.
  • in an ERC-20 world it may be that different tokens can serve as 'exchange of value' and say 'store of value'. Why have all attributes of money tied up with one (1) token... this might be referred to as 'polymorphic money'.
  • need to shake up the existing power structures and their fake news services, by changing the fundamentals of society. New types of seeds need to germinate.
  • HashGraph variants may replace the miners. I would be in favour of that. I would like to see Roger Ver fund the development of such a project for BCH. He is first of all - a peer to peer guy.
  • .
  • this is a process... good ideas emerge... very hard to suppress ideas today with the Internet.

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15 hours ago, MaxEntropy said:

Bitcoin already provides 'cross-border' solutions...

SWIFT is a dinosaur business model which is already replaced... which is why it is hugely limiting for Ripple to partner with a failing banking business model. 

This is the best comment of the day LMFA

 

Serious can someone make MAX a mod he deserves it

 

 

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