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Something about Ripple I have heard from China's bank

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China in the past week has put a hold on all US financial services firms working in China.... So at least till the trade stuff gets sorted out I wouldn't expect any progress on Ripple, American Express, or IBM making inroads into Chinese markets. 

Not to make stereotypes but Chinese officials are known to have their hands in lots of things outside their government roles. I wouldn't be surprised if the hub of bitcoin isn't going to just wake up to XRP unless the ruling party makes them adopt XRP. 

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4 hours ago, Liagala said:

Their new solution, xVia, is a simple plug-and-play application that can be used by anyone.  It will not be too expensive.

It's 10M USD according to old documents...it's expensive.

4 hours ago, Liagala said:

You have the wrong information here.  xCurrent does not use a market maker.  xCurrent is simply a messaging service, just like the SWIFT system (but much faster, cheaper, and more direct).

xCurrent has to use market makers. Please go back to study.

 

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5 hours ago, yxxyun said:

1, Ripple wants China 's bank trial their solution, start from small banks,  but their solution is too expensive for small banks. 

2, Ripple 's solution xCurrent use market maker to transfer overseas payments,  but market maker mode is not allowed by China 's policy.  This point the details I'm not quite understand. 

3, China bans all the Cryptocurrencies and exchanges,  so Ripple 's solution xRapid which use XRP is also not allowed. 

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47 minutes ago, tulo said:

It's 10M USD according to old documents...it's expensive.

xCurrent has to use market makers. Please go back to study.

 

Can you please elaborate on this Tulo?   Is the market maker involvement the fact that exchange rates need to read from somewhere....   so XCurrent is looking at the market makers bids but not actually using the market? 

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3 minutes ago, Tinyaccount said:

Can you please elaborate on this Tulo?   Is the market maker involvement the fact that exchange rates need to read from somewhere....   so XCurrent is looking at the market makers bids but not actually using the market? 

A USD-->XRP-->MXN payment will need liquidity for both USD-->XRP trade and XRP-->MXN trade. The liquidity has to be provided by someone, i.e. you need to find someone who sells XRP for USD and someone who sell MXN for XRP. Whoever they are (speculators on exchanges, professional firms, ...) they are liquidity providers, i.e. market makers. Without those market makers there is no liquidity and the payment cannot go through.

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8 minutes ago, tulo said:

A USD-->XRP-->MXN payment will need liquidity for both USD-->XRP trade and XRP-->MXN trade. The liquidity has to be provided by someone, i.e. you need to find someone who sells XRP for USD and someone who sell MXN for XRP. Whoever they are (speculators on exchanges, professional firms, ...) they are liquidity providers, i.e. market makers. Without those market makers there is no liquidity and the payment cannot go through.

That's xRapid or xVia, not xCurrent.  The xCurrent system is direct messaging from one bank to another, and does not use XRP or market makers in the process.

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16 minutes ago, tulo said:

A USD-->XRP-->MXN payment will need liquidity for both USD-->XRP trade and XRP-->MXN trade.

I think you might have confused it with XRapid.  In XCurrent the Ripplenet entities that the bank is trusting holds the sending banks Nostro account to provide the liquidity.  So did your market maker comment refer to XRapid or XCurrent?

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8 minutes ago, Liagala said:

That's xRapid or xVia, not xCurrent.  The xCurrent system is direct messaging from one bank to another, and does not use XRP or market makers in the process.

You're right, but even xCurrent has to use liquidity providers. They are the "connectors" of ILP. Every time you need to switch a currency to another you need someone that want to sell one currency for another. I don't know chinese regulation, but Market Makers can be banks and FI itself and I don't think that should be a big problem. I see more problems when external non-regulated market makers are used.

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1 minute ago, tulo said:

even xCurrent has to use liquidity providers. They are the "connectors" of ILP. Every time you need to switch a currency to another you need someone that want to sell one currency for another.

In xCurrent it works the same way the SWIFT system works - the banks have Nostro/Vostro accounts so there is always cash on hand in each other's currencies.  They draw from that to make the switch, rather than going to an external source to exchange.  It avoids the difficulties with market makers and such, but does require tying up a large amount of capital in just holding assorted currencies.  Freeing up that money for other uses is one of the major draws of the xRapid system for larger banks. 

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