XRP (XRP) – What will happen to the trillions locked in Nostro Vostro accounts?

[DreXRP]

Nice article that you can read all the way. But just want to bring a few soothing quotes:

https://www.cryptoglobalist.com/2018/09/04/xrp-xrp-what-will-happen-to-the-trillions-locked-in-nostro-vostro-accounts/

Quote

While banks will not be converting $20 trillion into XRP, they will still need to hold XRP for a few seconds, in the transaction process. When this starts happening at a global scale, and continuously, it will shore up the demand for XRP, thus pushing up its price. It’s simply a case of demand and supply. Then there is the fact that once banks start using XRP at scale, retail investors will believe in it more, further pushing up its demand.

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Quote

In essence, as banks begin to adopt XRP, the impact will go beyond cross-border payments. It will be all encompassing, touching on all aspects of the economy. At that scale, the real value of the XRP coin will be unlocked. It will be worth multiples of what it is worth today.

 

[knull]

Sorry, this is just a poor rehash of older articles.

[Skippy]

Well. At some point it just gets cheaper to store XRP instead of fiat currencies if FIs and banks do a lot of transactions with it. No need to pay fees all the time. 

edit: with fees I mean the price for exchanging fiat->XRP and XRP->fiat

Edited September 4, 2018 by Skippy

[mistatee2000]

The money that is freed by the banks is unlikely to feed back in to xrp or any other DA in the near future. It is more likely to be invested in other areas, with the positive global economic impact that it will benefit all, through cheaper loans and improved availability of money. Some of it might even be used to eradicate the ticking time bomb of QE brought about by the crisis of 2008. What do I know - I threw out my old economics text books a long time ago when I realised that the old macro economic rules don't seem to apply any more. With all the QE which has taken place around the world, there should be more hyper inflation than is being experienced by one or two third world economies ( and I don't mean that in a derogatory way).

The price of xrp will initially increase or otherwise due to it's perceived utility by institutions and the speculating global investors, not due to funds being released from nostro/vostro accounts. The larger institutions which make massive returns from correspondence banking will not be in a hurry to scale down this side of their business, hence why Ripple is currently targeting the smaller institutions in the East.

[miguelborges99]

Why not use a stable coin for cross-border payment like IBM/Steller intends to do, instead of using XRP ?

Edited September 4, 2018 by miguelborges99

[Raz]

4 hours ago, miguelborges99 said:

Why not use a stable coin for cross-border payment like IBM/Steller intends to do, instead of using XRP ?

Third party risk. Who is auditing these stable coins? It’s digital fiat which isn’t decentralized, subject to more issuance, and a walled garden of sorts.