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Danger by own currency? - banks & financial institutions


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Hi guys,

first of all, thank you for the great forum. It's so interesting and funny at the same time! ?

Now my question which is maybe a kind of stupid but i have been asking it myself for a long time:

Why banks and financial institutions do not create there own crypto? Yes for sure, the developing itself would cost a lot of money, time and so on. So it's easier to take Ripple, its already matured and much cheaper than other solutions. BUT my average brain is telling me, creating and using the own crypto would be another step cheaper especially in the long time run and the institutions will also have a little bit more the control about it - we all know, banks like this. I assume that I am wrong, but why? What did I miss?

I am ready to spend a bunch of my money for xrp (i am also ready to loose it maybe ?) but this question above has held me back until now.

greetings from switzerland!

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3 minutes ago, Django said:

Hi guys,

first of all, thank you for the great forum. It's so interesting and funny at the same time! ?

Now my question which is maybe a kind of stupid but i have been asking it myself for a long time:

Why banks and financial institutions do not create there own crypto? Yes for sure, the developing itself would cost a lot of money, time and so on. So it's easier to take Ripple, its already matured and much cheaper than other solutions. BUT my average brain is telling me, creating and using the own crypto would be another step cheaper especially in the long time run and the institutions will also have a little bit more the control about it - we all know, banks like this. I assume that I am wrong, but why? What did I miss?

I am ready to spend a bunch of my money for xrp (i am also ready to loose it maybe ?) but this question above has held me back until now.

greetings from switzerland!

Because they would still be in the same situation they are now. No bank is going to use another banks coin. Plus you still need a bridge currency.....xrp. 

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13 minutes ago, Dymac said:

Because they would still be in the same situation they are now. No bank is going to use another banks coin. Plus you still need a bridge currency.....xrp. 

Agreed - but why the banks are not able to create there own decentralized, digital asset. So also there own standardized bridge currency. This would be a win win situation for the banks (both sides would have big savings) - so i cannot find the reason why the banks should not work together at this project. For sure, there would be a lot of effort behind that, I do not doubt.

Edited by Django
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9 minutes ago, Django said:

Agreed - but why the banks are not able to create there own decentralized, digital asset. So also there own standardized bridge currency. This would be a win win situation for the banks (both sides would have big savings) - so i cannot find the reason why the banks should not work together at this project. For sure, there would be a lot of effort behind that, I do not doubt.

You probably don´t work in banking, right? It takes decades to build such complex environment because of the nature of banking industry itself. Big banks are fkg slow in taking decisions and making consensus. Look at Swift, 40 years of stagnation and minor improvements.

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Please search the forum first.  This has been answered many times in a variety ways, and I think you'll be pleased with the dozens of robust discussions on this topic.  Banks can do anything they want.  Being late to the game sort of stinks for tardy entrants though.

Blockbuster created their own dvd by mail and streaming service.  Just too late.

Anheuser Busch created their own line of "craft" beers. Just too late.

Kodak created their own digital cameras.  Just too late.

Barnes and Noble created their online book buying experience.  Just too late.

And the banking industry can pretend they're silicon valley tech companies, and create the new internet of value transfer, relationships and all.  Funny how none of them are doing that.

Maybe they know it's too late.

Edited by xrphilosophy
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2 hours ago, Django said:

Agreed - but why the banks are not able to create there own decentralized, digital asset. So also there own standardized bridge currency. This would be a win win situation for the banks (both sides would have big savings) - so i cannot find the reason why the banks should not work together at this project. For sure, there would be a lot of effort behind that, I do not doubt.

Same reason why banks don’t create their own Kafka (https://kafka.apache.org/) - somebody did it for them. You need to know where your competitive advantage is. 

Having that said, some (big boys like JP) will try. Will they succeed?

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Another example would be something like MS Office. Corporations all around the world have licencing agreements to use MS Office within their offices. Why not just create their own suite of office software and save the licencing costs?  Because then you have to research it, develop it and (this is the kicker) support and maintain it.   

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