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Shazam5890

Met a SWIFT employee today

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2 hours ago, icebreath said:

On the second website it says that CLSNet provides enhancement in liquidity. How is that even possible without a digital asset?

Simple. Selling point is that “you know where your cash is”. Basically this is SWIFT GPI with some limitations which makes it slightly cheaper than SWIFT.

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CLS is settlement service. 

It uses swift to send messages, so technically you still pay swift to settle and cls as well.

Instead of me sending you 1 apple and receiving 1 beer from you, i send my apple to cls and you send beer to cls, thus "eliminating counterparty risk", then cls sends me beer and you apple. For this they receive some good money. 

Process is really complicated and expensive. 

If one day i will be able to send you apple and receive beer within 3 seconds, provided that we both trust each other and can do it privately, i believe there will be no market for cls or swift at all. Maybe only for parties that are not trustworthy

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3 hours ago, Lamberth said:

You know the pricing model of CLS, right? Still cheaper than SWIFT but come on, paying X USD per trade is still ridiculous. 

More importantly, you need to be a member and the funds have to be moved to settle trades. 

I am well aware of how CLS works as I have read their annual reports.  :) 

Below is a screenshot from their 2016 annual report.  For every $1 million USD settled, they generated 0.14 GBP in revenue.  This works out to 0.83 GBP per instruction.  CLS refers to fees they charge for their services as "tariffs."  I suspect with CLSNet, they are going to try adopt a similiar pricing structure as Ripple.

CLS 2016 Annual Report.PNG

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1 hour ago, Sebastian said:

I am well aware of how CLS works as I have read their annual reports.  :) 

Below is a screenshot from their 2016 annual report.  For every $1 million USD settled, they generated 0.14 GBP in revenue.  This works out to 0.83 GBP per instruction.  CLS refers to fees they charge for their services as "tariffs."  I suspect with CLSNet, they are going to try adopt a similiar pricing structure as Ripple.

CLS 2016 Annual Report.PNG

On top of that every cls member charges their clients a small fortune (mainly for settlement). 

The only reason cls manages to be cheaper for sme than the original model is essentially cls natively netting transactions for larger banks. Cost per transaction is higher for cme and the settlement is still the most expensive part.

Edited by Lamberth

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3 hours ago, Robocrab85 said:

CLS is settlement service. 

It uses swift to send messages, so technically you still pay swift to settle and cls as well.

Instead of me sending you 1 apple and receiving 1 beer from you, i send my apple to cls and you send beer to cls, thus "eliminating counterparty risk", then cls sends me beer and you apple. For this they receive some good money. 

Process is really complicated and expensive. 

If one day i will be able to send you apple and receive beer within 3 seconds, provided that we both trust each other and can do it privately, i believe there will be no market for cls or swift at all. Maybe only for parties that are not trustworthy

CLS does not eliminate counterparty risk, they eliminate settlement risk (simply because all transactions are Payment vs Payment). Counterparty risk is still there.

The model you described is even worse in practice for most of FIs. You send 1 apple to a bigger bank you work with and it settles with another bank (which received 1 beer from their client) using cls. There is a limited number of banks who can settle directly - https://www.cls-group.com/communities/settlement-community/settlement-members/

Long story short, xVia would be competing with CLS, not xRapid / XRP.

Edited by Lamberth

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1 hour ago, Lamberth said:

CLS does not eliminate counterparty risk, they eliminate settlement risk (simply because all transactions are Payment vs Payment). Counterparty risk is still there.

Agree. I can only add that in case a counterparty fails to pay, other members should send their apples to cls to cover that amount. So technically, counterparty risk is also mitigated. 

But my point was that xrapid model is far more effective, fast, cheap and easy to use than cls can ever become. So i don't see them as direct competitors at all.

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On 8/22/2018 at 3:59 PM, Shazam5890 said:

given that a consortium of banks own SWIFT, and its in the interest of these banks to keep it alive, I do think he has a point.

Ripple financed by SBI which is a consortium of banks also.

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1 hour ago, ImBroke said:

SWIFT $$$$ is now down to 17 hours from Europe to Vietnam!! Not bad! 

But I want instantaneous..

As fast as this post gets sent after I press submit reply fast.

It's my money and I want it now!

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11 minutes ago, Delectro said:

But I want instantaneous..

As fast as this post gets sent after I press submit reply fast.

It's my money and I want it now!

Everything is kind of backwards. Anyone on here could send me some xrp to, for example, my wirex wallet in seconds, from anywhere in the world. I can spend that money seconds later. 

We all know this can be done but when I speak to people with no interest in crypto they do not give a toss about having to wait for their money. They accept it. Even my family that send remittances back to other family in Kenya and have to wait hours or days don't seem to care or want change. They accept the fees. Maybe they don't know any better.

This will only take off when financial institutions decide to make it happen and that is why XRP is the best bet.

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