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Ripple’s XRP Isn’t Making Western Union’s Payments Cheaper, CEO Says

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28 minutes ago, enrique11 said:

https://www.marketwatch.com/story/why-western-unions-ceo-doesnt-see-bitcoin-a-fast-track-to-overtaking-dollars-euros-2018-06-13

 

<<--- Here's another article with this guy.  He sounds old school, like Warren Buffet and his clownish sidekick, Munger.

The younger generation will usher in this tech, and the dinosaurs can watch it replace their obsolete legacy systems.

Exactly. WU isn’t the only game in town. There are so many use cases..... it’s not going to appeal to everyone. Not in the least bit concerned. We are still in the starting blocks. 

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I'm glad the article at least included a rebuttal from Asheesh Birla. It isn't that often we see an article give both sides of a situation. 

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Whats stopping Ripple from taking out WU, MoneyGram, etc and doing money transfers and remittance payment themselves?  Obviously this would take some work but won't it build the liquidity they desire? The infrastructure is built, thoughts?

*disclaimer just a wild thought

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Anyone have some details on transfer rates and XRP exchange rates? Let's do some research and find out why they haven't saved any $, or if they're bluffing.

3 more pages of people shouting "FUD!!!" isn't that interesting.

Edited by flanman

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If I were to guess, the defensive tone of the first quote (the blah blah quote) may be due to the journalist putting emphasis on cost reducing and CEO not wanting WU management to seem inefficient or lacking in that regard. Profitability and cost effectiveness is a big deal for publicly traded businesses.

 

The whole article gives a vibe of a company simply going through the contractual motion of testing a new supplier. 

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WU CEO says XRP did not save them any money and you have pages of fanboys screaming "FUD"?

 

10 transactions or 10 000, does it get cheaper as number of transactions increase?

 

Why would people doubt what he is saying, its not like he wouldn't want transactions to be as cheap as possible

 

We need official response  from Ripple

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10 hours ago, enrique11 said:

https://www.marketwatch.com/story/why-western-unions-ceo-doesnt-see-bitcoin-a-fast-track-to-overtaking-dollars-euros-2018-06-13

 

<<--- Here's another article with this guy.  He sounds old school, like Warren Buffet and his clownish sidekick, Munger.

The younger generation will usher in this tech, and the dinosaurs can watch it replace their obsolete legacy systems.

Thanks for sharing, this guy is not PRO crypto att all....

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Perhaps parsing words a bit too much here....

It seems to me the CEO is saying they did not see any cost savings overall (i.e. in their operations/process across the enterprise) vs seeing cost savings within a single transfer.

It is not clear, but specific detail would be helpful here such as:  "We did a transfer the old way and then did a similar transfer using Xrapid.  The old way cost X and using Xrapid cost X."  Y'know... a straight A/B split test.  It either saves, or it does not.  1 transaction should tell you this basic info; don't need 10 or 10,000.

Also the rebuttal from Birla about "scaling".  Seems to point to the idea that the CEO wasn't talking about cost savings at the individual transaction level, but more on the enterprise level.  It's kinda egg/chicken circular:  WU would have to be reconfigure much more of their operations to mesh with Xrapid to see the Xrapid cost savings magic, but WU can't justify major changes unless they scale Xrapid usage high enough.  And 10 transactions isn't enough to change (and purge) their current systems of the inefficiences that Xrapid solves (particularly staff and offices that babysit nostro/vostro, confirmations, compliance, etc).  Small sample, same old systems/costs in place, don't see benefit, and round and round we go.

A distinction that I'm not sure many people catch is that the savings of Xrapid aren't realized simply because of some Xrapid/XRP "magic", it's all the staff and legacy systems that can be replaced/overhauled that creates much of the savings.  Simply doing an "Xrapid" transaction (or 10) but still having all your old systems in place... no wonder WU did not see any savings; especially at the overall enterprise level.

Does this make any sense?... can't quite clearly articulate the thought right now... ?

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go read the Bloomberg and Forbes write-up...the CEO clearly doesn't get it and seems more interested in defending their existing systems than embracing something new...and they are continuing to test...

it's not great PR for Ripple, but the CEO's comments come off as short-sighted and obtuse.

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How fast does WU transfers money  from country a to country b? Sure it cant beat 10 seconds Ripple offers

 

Even if cost of transferring  money by XRP is the same as traditional method  there is still benefit of almost instant settlement

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