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RIPPLE: Why Adoption is Poised in the Australian Pacific

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Posted (edited)

Thanks @mars75 

I love your posts, glad to see you have your own site! :D

More Central Bank talk...

"According to Philip Lowe‚ the governor of the RBA‚ the central bank is “liaising closely with fintech and financial institutions. We also regularly talk with other central banks that have tested distributed ledger technologies in some related contexts. We are also currently working with some external entities to observe or participate in proof-of-concepts similar to those of other central banks. So this area remains a work in progress for us”.† Besides R3’(who more than likely will utilize the Interledger Protocol to achieve interoperability between the many different payment systems being developed)‚ Ripple is the only notable company to have done extensive trials and proof of concepts with several central banks. Even more‚ the Bank of England and the Saudi Arabian Monetary Authority are paying customers of Ripple. If the RBA wants to develop a distributed ledger system with a native digital equivalent of the Australian dollar‚ the bank will seriously consider utilizing the Interledger Protocol to achieve interoperability with the other central bank systems."

Edited by GiddyUp
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5 hours ago, mars75 said:

pertains to the Australian Pacific region and why it's likely to see some major adoption in the future.

I love your work Mars and hope your new format works well for you.

I think that a complete picture though would also need to acknowledge that XLM with IBM has already got a foothold in the South Pacific market for all the reasons you outlined about expensive cross border situation.  You didn't mention Stellar, and yet unfortunately(?) they have beat Ripple to that market.  It's an incomplete picture not to acknowledge that fact.

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Posted (edited)
18 hours ago, Tinyaccount said:

I love your work Mars and hope your new format works well for you.

I think that a complete picture though would also need to acknowledge that XLM with IBM has already got a foothold in the South Pacific market for all the reasons you outlined about expensive cross border situation.  You didn't mention Stellar, and yet unfortunately(?) they have beat Ripple to that market.  It's an incomplete picture not to acknowledge that fact.

I'll be honest to say I debated whether or not I should have included IBM/Stellar. I don't share your view on Stellar beating out Ripple in the region. Two of the big four banks in Australia (which dictates the region) are already xCurrent adopters while the other were in discussions with Ripple. Meaning in a small region interoperability between the big four banks will be critical. Whatever transpires there are two things that people need to take away in regards to Stellar. 

1. Any transactions involving with RippleNet users will by default make Stellar users utilize the interledger protocol for interoperability. Meaning Ripple gains access to whoever is using Stellar in the region. Both IBM and Stellar are Hyperledger members and if they intend to use Quilt, they'll be using the interledger protocol as well.

2. The same criticism applies to Stellar that is used on Ripple in regards to XRP. As of now, IBM has not publicly disclosed any intentions of supporting or utilizing XLM to address liquidity in the region. As of now, no one knows what their intentions are.

 

Edited by mars75

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5 hours ago, mars75 said:

I'll be honest to say I debated whether or not I should have included IBM/Stellar. I don't share your view on Stellar beating out Ripple in the region

Um it's not a view...   It's a fact.  XLM have been used in real world cross border payments in the South Pacific.  XRP so far (as far as we know) has not.  That will of course change...  and maybe soon.

But it is not a view that XLM beat XRP to market in the region....  it's a fact.   To ignore that is not a complete picture of the facts on the ground.

Personally I think XRP will swamp XLM in all markets but the facts are the facts for the moment.  I think your article makes it clear that XRP will be the massive player...  but whether we like it or not,  XLM is in there also.

As I say...  I have enormous respect for your investigative skills and wish you every success.  The above is just my view and you can of course put whatever you like in your articles...  I just think your work deserves a full view of all facts since it is so good otherwise.

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Nice article although one thing I did notice was your statement;

"Both the Australian dollar and the New Zealand dollar are exotic currencies that face less liquidity and higher volatility compared to the major circulating currencies."

I don't think this is accurate, both the AUD and the NZD are in the top 10 currencies traded on the FX market, while compared to USD, GBP and EUR they do have less liquidity they still have enough for it to not really be a problem.

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