Interesting read; Federal Reserve looking at XRP

[tar]

10 minutes ago, PG1 said:

Isn't collateral just protection against counterparty risk? Which is what XRPL removes.

Yes and no.

It removes the counterparty risk (in order to grant credit) and therefore provides liquidity ("money") in form of circulating claims that others accept as they are aware that they can use those to engange in the issuers wealth which makes this claim stable and reliable.

XRPL does remove the additional counterparty risk on (cross-border) payments for the particular participants (esp. regarding NOSTRO/VOSTRO) - but it does not remove the inherent currency risk (e.g. USD to MXN) which is differently backed (US collateralization vs. Mexican collateralization and their corresponding legal institutions). So, it does also not remove its own inherent risk (being volatile as every single asset is). Therefore, a mix of totally different assets (and claims) that are on the market should be used as backup for a genuine currency - as collateralization for the credit contracts whereof the "money" is issued. And that is what "fiat money" is all about.

Edited June 19, 2018 by tar

[Cryptoball]

5 hours ago, RegalChicken said:

they aren't alone in that theory, there are quite a few people speculating the same thing when you consider the governmental involvement that seems to exist between Ripple and regulators. However, I honestly take anything that you find on a website called "crypto, coin, btc" etc with a grain of salt.

When you read it on bloomberg, forbes, WSJ, etc then get excited. 

Sometimes maybe most of the time stories like these start on the fringes. Mainstream media is the last to report. 

[Kalarie]

3 hours ago, Loki said:

Can we stop with the low quality posts of complaining about posts and also posting random crap to be "funny"? 

Someone posted an article. Those that want to discuss it are discussing it. 

Certainly everyone here is intelligent enough to realize that the dollar as a reserve currency is past it's prime unless drastic measures are taken. It's not that far of a leap to imagine XRP running as a reserve currency or assisting a reserve currency in transferring funds globally. 

The owner of Twitter and Steve Woz are saying they think BTC will be the one-world currency. 

These types of topics do actually get discussed. And if respectable people think a slow dinosaur like BTC will be the one world currency...I'm sure it's safe to also discuss XRP in some of these capacities. It's called forward thinking and imagination. 

1) Loki has a point

2) The FED isn't thinking "XRP replaces the USD."  The Fed is thinking "We have to move money all over the place every night among tons of banks to meet reserve requirements, and we also ship USD around the world with the IMF...FFS XRP has to be a cheaper solution to moving money..."

[ringer2]

14 minutes ago, Kalarie said:

The Fed is thinking "We have to move money all over the place every night among tons of banks to meet reserve requirements, and we also ship USD around the world with the IMF...FFS XRP has to be a cheaper solution to moving money..."

The article doesn’t give any evidence in the slightest that the fed is thinking about XRP that way. NONE. That is a leap both the article and the OP is making simply because a ripple exec was placed on the payments committee. If they truly thought that about XRP they would have NEVER put a ripple exec on the committee. That screams conflict of interest and would never be allowed. 

[Guest]

27 minutes ago, ringer2 said:

The article doesn’t give any evidence in the slightest that the fed is thinking about XRP that way. NONE. That is a leap both the article and the OP is making simply because a ripple exec was placed on the payments committee. If they truly thought that about XRP they would have NEVER put a ripple exec on the committee. That screams conflict of interest and would never be allowed. 

Oh you think the people who make the rules for us follow some type of rule book. That's so cute and innocent. 

The poster you quoted, @Kalarie, is taking a leap on what she thinks the FED is actually thinking, not the articles probably incorrect intrepation of it. 

@Kalarie I agree with what you said. I don't think XRP will be a reserve currency - but it is really fun to think about the hows, whys, and prices that would come out of that!

If we only talked about price movement at the moment, or 100% verified information, this sub would be dead within 3 days. 

The people who got wealthy off of Amazon stock, for example, sat with their friends over coffee (not sure about forum groups back then) and said, "Look, I'm telling you, it's just books now, but someday it will be music, and then toys and vitamins - everything! Amazon will be the biggest company in history!" 

To which this poor person's coffee friends said, "This is a joke man. Amazon sells books. And why would you buy books off of a computer? It's weird. Bookstores will quickly shut that down."

And the Amazon stock holder said, "But look at this research I've done! The people at Amazon are talking to people in the music industry!"

And his friends ridiculed him/her saying, "Bwah ha ha! See??!! So you can't prove anything. 'Talks'."

Our Amazon investor in this story long ago retired with his lambos and private island. S/he sends postcards to old coffee friends at the holidays. 

 

 

[ringer2]

11 minutes ago, Loki said:

Oh you think the people who make the rules for us follow some type of rule book. That's so cute and innocent. 

Sigh. Yes, the fed is going to follow such basic conflict of interest rules as this. 

[Flintstone]

I think there may be too much focus on XRP replacing the U.S Dollar as a reserve currency, instead of XRP removing the burden of a reserve currency by acting as a bridge asset.

[Guest]

17 minutes ago, ringer2 said:

Sigh. Yes, the fed is going to follow such basic conflict of interest rules as this. 

I'm more jaded; perhaps it's my own life experience. 

I'm not arguing for XRP being a reserve currency btw, but I do think the FED has a to be determined purpose for XRP. 

[Flintstone]

15 minutes ago, Loki said:

I'm more jaded; perhaps it's my own life experience. 

I'm not arguing for XRP being a reserve currency btw, but I do think the FED has a to be determined purpose for XRP. 

Yeah, I agree. There are so many dots but they are not numbered, trying to connect them is difficult. But I do think they will form a picture at some point. I'm sure we are all hopeful of what that picture may be!  

[ringer2]

35 minutes ago, Loki said:

I'm more jaded; perhaps it's my own life experience. 

I'm not arguing for XRP being a reserve currency btw, but I do think the FED has a to be determined purpose for XRP. 

Why do you think that? What evidence do you have that is the slightest evidence of such plans?

[Kalarie]

20 hours ago, ringer2 said:

The article doesn’t give any evidence in the slightest that the fed is thinking about XRP that way. NONE. That is a leap both the article and the OP is making simply because a ripple exec was placed on the payments committee. If they truly thought that about XRP they would have NEVER put a ripple exec on the committee. That screams conflict of interest and would never be allowed. 

I made a hyperbolic jump by saying they're thinking of XRP specifically.  What I intended to convey is that I don't believe the FED is thinking of any crypto replacing the USD in any way.  I do think the FED is exploring Ripple's use case of how to move money around the world faster using blockchain technology.  That is the reason they asked a Ripple exec to get on board.  Ripple is hoping to not only prove the use case with the FED, but then when the FED does put out a bid for a solution, they'll be in a good position to write up a very good response to the bid.  Government branches (which the FED is private and doesn't have to play by these rules but w/e), typically follow this pattern.

1) Get an Idea and bat it around informally with industry folks you know

2) Issue a Request for Information, or form a team to research said Idea and develop a logical solution (The Phase the FED is in now, with Ripple being on the team)

3) Using all of the information learned from step two, issue a Request for Proposals (RFP), whereby everyone is allowed to make a bid to supply the service being requested.

4) Evaluate all of the bids and select the best value/least cost/most appropriate (every RFP has different weights contrary to common belief that all gov't bids are just low price bids)

5) Select a bid winner and make a contract with them

6) implement

If you think it's a conflict of interest for a company to provide help during step two, you're dead wrong.  It's actually extremely common, and it's also common for RFPs to be written by vendors and then screened by the gov't agency, thereby alleviating the gov't agency of the time it takes to write the RFP, especially on highly technical bids where the agency knows far less about the product than the vendors do.

So yeah, I think it's extremely likely the FED is looking at cheaper ways to move money around.  I also think it's perfectly normal for someone like Ripple to help them explore how blockchain is a possible solution, and it's not a conflict of interest.  I wouldn't be surprised at all if Ripple helped them write the eventual RFP, or used their experience of working with the FED to make their own bid on the final proposal look better.  And yes, I have extensive experience in dealing with gov't bids on projects. 

Sorry if you thought I literally meant the FED was skipping all of the due diligence work and going straight to XRP.  It's possible they'll eventually use XRP via a Xrapid product, but it's also possible they'll stick to not using XRP via a Xcurrent product, be it Ripple's Xcurrent, or the FED's/other company's version of Xcurrent.  Ripple is just trying to put themselves in the best position they can to get the FED to use their products.

Edited June 20, 2018 by Kalarie
spelling edit meh

[ringer2]

17 minutes ago, Kalarie said:

I made a hyperbolic jump by saying they're thinking of XRP specifically.  What I intended to convey is that I don't believe the FED is thinking of any crypto replacing the USD in any way.  I do think the FED is exploring Ripple's use case of how to move money around the world faster using blockchain technology.  That is the reason they asked a Ripple exec to get on board.  Ripple is hoping to not only prove the use case with the FED, but then when the FED does put out a bid for a solution, they'll be in a good position to write up a very good response to the bid.  Government branches (which the FED is private and doesn't have to play by these rules but w/e), typically follow this pattern.

1) Get an Idea and bat it around informally with industry folks you know

2) Issue a Request for Information, or form a team to research said Idea and develop a logical solution (The Phase the FED is in now, with Ripple being on the team)

3) Using all of the information learned from step two, issue a Request for Proposals (RFP), whereby everyone is allowed to make a bid to supply the service being requested.

4) Evaluate all of the bids and select the best value/least cost/most appropriate (every RFP has different weights contrary to common belief that all gov't bids are just low price bids)

5) Select a bid winner and make a contract with them

6) implement

If you think it's a conflict of interest for a company to provide help during step two, you're dead wrong.  It's actually extremely common, and it's also common for RFPs to be written by vendors and then screened by the gov't agency, thereby alleviating the gov't agency of the time it takes to write the RFP, especially on highly technical bids where the agency knows far less about the product than the vendors do.

So yeah, I think it's extremely likely the FED is looking at cheaper ways to move money around.  I also think it's perfectly normal for someone like Ripple to help them explore how blockchain is a possible solution, and it's not a conflict of interest.  I wouldn't be surprised at all if Ripple helped them write the eventual RFP, or used their experience of working with the FED to make their own bid on the final proposal look better.  And yes, I have extensive experience in dealing with gov't bids on projects. 

Sorry if you thought I literally meant the FED was skipping all of the due diligence work and going straight to XRP.  It's possible they'll eventually use XRP via a Xrapid product, but it's also possible they'll stick to not using XRP via a Xcurrent product, be it Ripple's Xcurrent, or the FED's/other company's version of Xcurrent.  Ripple is just trying to put themselves in the best position they can to get the FED to use their products.

Ok, well I got that impression because the title of the thread said “fed looking at XRP” when they have said pno such thing. Now, if indeed the fed’s faster payments committee is only in the RFI stage, you are right. If they are in the RFP stage it would be a conflict. 

Edited June 20, 2018 by ringer2