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JCCollins

XRP - The Standard (Big read)

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10 hours ago, TimeLord said:

@JCCollins

Read the concluding paragraphs to your article. I do not think you understand the role that the banks will play following a USD reset. You presume that these banks, which now hold the customer account funds, will be utilized on financial matters going forward. Well, you are in the common company of the Ripple management. Good. I will offer an alternative perspective. The banks will be downgraded after a USD reset, while cryptos will appreciate in value. The stature of the banks as investment vehicles will be greatly diminished after the pension funds which hold bank stocks, are downgraded or fail. Banks will become a risky investments and their collective power will be significantly diminished. Deutsch Bank is being restructured as we speak.

I would be interested to hear your views on the banks and XRP, in the scenario, that I describe.

Brian Armstrong of Coinbase just rendered the Ripple Network quaint, with the introduction of the Coinbase Wallet app. This app does not require KYC and AML information. The user is not tracked. This app performs atomic swaps via an arbitrary number of AirSwap and 0x liquidity providers, anonymously. I offer this perspective, because this is the way the crypto communities move beyond the historic confines of the central banks and the FED. This app executes trades in less than 30 seconds. The app does away with network segmentation of the crypto space. . It is the killer app for crypto.

In making this one application available, Brian Armstrong has become a god.

Okaaay, you are delusional as they come.  Keep putting your faith in your man "god" if you want to!!! Anything man-made can be broken or circumvented. With that being said, if you think for one second that governments don't have mechanisms in place for tracking and tracing these crypto assets/tokens you are akin to Alice-in-Wonderland running down that rabbit-hole of delusion and deceit my friend. In reality, it's now probably easier for them to track and trace (30:40 - 31:55) crypto/token transactions since everything is digital and on a blockchain network.

1. ‘Fight Fire with Fire’: IMF Chief Lagarde Calls for Blockchain-Powered Bitcoin Regulation

2. Sitting with the cyber-sleuths who track cryptocurrency criminals

3. The Blockchain Alliance (If you scroll down the webpage you will see that Coinbase is among the list of fintechs and exchanges helping governments combat criminal activities etc. via the blockchain)

This idea that Coinbase's wallet app will not be KYC/AML compliant is also nonsense. Unless Coinbase wants to get smacked with a nasty fine similar to Ripple back in 2015, they will comply with all AML/KYC regulations, especially here in the US. At-any-rate them not complying with the proper KYC/AML checks does not comport with their compliance clause:

Quote

 

Coinbase, Inc., the company which operates Coinbase and GDAX in the U.S., is licensed to engage in money transmission in most U.S. jurisdictions. Most of Coinbase’s money transmission licenses cover US Dollar Wallets and transfers. In some states, money transmission licenses also cover digital currency wallets and transfers on the platform. In other states, no money transmission license is required to operate a digital currency business.

Coinbase is also registered as a Money Services Business with FinCEN.

Coinbase is required to comply with a number of financial services and consumer protection laws, including:

  1. The Bank Secrecy Act, which requires Coinbase to verify customer identities, maintain records of currency transactions for up to 5 years, and report certain transactions.
  2. The USA Patriot Act, which requires Coinbase to designate a compliance officer to ensure compliance with all applicable laws, create procedures and controls to ensure compliance, conduct training, and periodically review the compliance program.
  3. Most states’ money transmission laws and corresponding regulations. 

 

 

Edited by King34Maine

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3 hours ago, lucky said:

There currently isn't a true digital USD or YEN, and I doubt there will ever be one. You can't transform a T-Ford into a race car, you build a new car. Decentralization is a key feature of crypto, which means it cannot be created by a central bank.

Interesting perspective Lucky.  My view is the opposite and from what I can see countries like Japan are working on digital Yen for use in the home market. There are so many benefits from digital over analogue, for instance the text rich data, smart contract, accuracy, speed and tracing.  All these aspect can be used with other smart tech technologies like iphones and GPS and "the internet of Things".  A modern economy will run on different parameters and smart cash works much better than old style cash in these ecosystems.

The Bridge currency becomes the token of a basket of currencies and is the natural token for pricing commodities like oil, wheat, gold and silver.

 

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2 hours ago, FreedomGundam said:

Love your article, but is that to naive if we try to believe that XRP will be a bridge between giant currency? I mean Do you think central bank all over the world will buy XRP instead of using their own currency?

Why would central banks need to buy XRP? It’s not to say that they wouldn’t, but why do you think they would?

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7 minutes ago, JCCollins said:

Why would central banks need to buy XRP? It’s not to say that they wouldn’t, but why do you think they would?

I agree JC, valid questions.

Thanks for the wonderful article by the way. It's a breath of fresh air brought into the stale Ripple/XRP topic of recent days. A long read but worth every second. 

 

You said, "It is stated that the only way to truly prove that you understand something is to be able to explain it in very simple terms.  Not sure if I'm there yet, but I'm working on it."

You're doing a great job. You have to have a solid understanding to express such a HUGE "big picture" view in just 4,500 words. It takes many other "financial guru's" an entire book to get this idea across.

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2 hours ago, JCCollins said:

Why would central banks need to buy XRP? It’s not to say that they wouldn’t, but why do you think they would?

Great article J.C.  I always come away with new perspective when I read your articles.

It is my opinion that it is a disadvantage to not use XRP.  I'll explain.

Let's say I'm a bank (or a corp, or a business, or a reasonable person, etc).  I like what I'm getting from my new xCurrent deployment.  It's fast and is saving me money, so I in turn I can make better services for my customers, which in turn makes me more money.

I also see xRapid can save me some additional cost, which will also help me in the same way with services, customers, money... there is incentive to use this product.  Plus, I'm pretty sure my competition bank that just got xCurrent is thinking about these same options.  In order for me to stay competitive with them, I will need to have maximum cost savings -- because that's what they're going to do.

So I guess Game Theory and powerful incentives of cost savings.  I don't think any reasonable minded human being is going to decide they only want to save x% when they could use both and save x% + y%.  Money talks.

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2 minutes ago, MostlySilverFox said:

Great article J.C.  I always come away with new perspective when I read your articles.

It is my opinion that it is a disadvantage to not use XRP.  I'll explain.

Let's say I'm a bank (or a corp, or a business, or a reasonable person, etc).  I like what I'm getting from my new xCurrent deployment.  It's fast and is saving me money, so I in turn I can make better services for my customers, which in turn makes me more money.

I also see xRapid can save me some additional cost, which will also help me in the same way with services, customers, money... there is incentive to use this product.  Plus, I'm pretty sure my competition bank that just got xCurrent is thinking about these same options.  In order for me to stay competitive with them, I will need to have maximum cost savings -- because that's what they're going to do.

So I guess Game Theory and powerful incentives of cost savings.  I don't think any reasonable minded human being is going to decide they only want to save x% when they could use both and save x% + y%.  Money talks.

Thanks.  I agree.  My response was more about central banks "buying" XRP and holding them as reserves.  Central banks will of course "use" XRP to exchange value across the Interledger. 

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JC what are your thoughts on the amount of XRP Ripple holds? If all goes as planned they will be the worlds wealthiest company by a staggering large amount. That's always been one of the thoughts that crosses my mind, Will the powers to be allow this to happen. Thank you for your contributions, you're a very talented writer. 

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1 hour ago, AMGRACER said:

JC what are your thoughts on the amount of XRP Ripple holds? If all goes as planned they will be the worlds wealthiest company by a staggering large amount. That's always been one of the thoughts that crosses my mind, Will the powers to be allow this to happen. Thank you for your contributions, you're a very talented writer. 

I wouldn't worry about the escrow XRP. It will be used in the system as things expand.  What agreements will be put in place around its use and allocation can only be speculated at this point.  Maybe Ripple will use it for a special project which no one has visibility to yet.  I think there may be some big surprises down the road. But I'm just speculating.   

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On 9/13/2018 at 7:59 AM, Paulo said:

Thank you JC! Love to read your work.

I was curious about the tarot card in your photo so I did some searching.

The Fool or The Jester is one of the 78 cards in a Tarot deck. In occult tarot, it is one of the 22 Major Arcana, sometimes numbered as 0 or XXII.

Meaning: The Fool represents new beginnings, having faith in the future, being inexperienced, not knowing what to expect, having beginner's luck, improvisation and believing in the universe.

I find that very fitting seeing how we are all witnessing new beginnings in the international monetary system.

fool.png

The fool also is the only courtly character who has licence to ridicule the king by highlighting his weaknesses/faults .

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@JCCollins: One thing I do not get is this part:

China is the biggest creditor of the USA and therefore holds a vast amount of (claims on) US-Dollars. In case the US-Dollar increases in value, why should China has a problem? Its investment rises.

Edited by tar

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28 minutes ago, tar said:

@JCCollins: One thing I do not get is this part:

China is the biggest creditor of the USA and therefore holds a vast amount of (claims on) US-Dollars. In case the US-Dollar increases in value, why should China has a problem? Its investment rises.

Imagine you have a $1000 of another currency in a bank account and it’s value goes up against your native currency so that’s it’s worth $1500. That’s great but the cost everything else you have to buy with your native currency just went up 50%.  How’s that extra $500 going to help you?

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