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Bank of England "Synchronisation"

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6 minutes ago, WhentheBoat_ComesIn said:

Not forgetting our own Ryan Zagone was on the Parliament Panel. Remember this

 

Yes definitely and what's even more interesting is the hiring of Dan Morgan. It really shows Ripple's business acumen. Their management team has a huge network and ties to big banks and central banks. His resume and previous ties speak for themselves:

https://uk.linkedin.com/in/dan-morgan-73800422

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Cross-border payments when applied to wholesale markets present different challenges than when compared with retail and corporate transactions, which the Ripple product is designed to handle. The availability of liquidity is one such challenge, and the PoC allowed the Bank and Ripple to begin exploring these questions.

@GrayFox Great post and great links!

I found this comment interesting from your first link. Still need to read the second. 

Interesting because they say "Ripple product is designed to handle Retail and Corp TXs." 

Yet the paper is about syncing up CB RTGS systems, which will be awesome!

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3 minutes ago, KarmaCoverage said:

@GrayFox Great post and great links!

I found this comment interesting from your first link. Still need to read the second. 

Interesting because they say "Ripple product is designed to handle Retail and Corp TXs." 

Yet the paper is about syncing up CB RTGS systems, which will be awesome!

And that last point they made "The availability of liquidity is one such challenge, and the PoC allowed the Bank and Ripple to begin exploring these questions." Why would a central bank see the need to answer the liquidity issue? A few months after this was released, Ripple went on a xRapid rebrand with that new symbol. Ripple's message in the media as well shifted from xCurrent to mostly xRapid. It's almost as if the points raised by the BoE and Ripple needed to be answered and they worked through out the year to provide them by creating liquidity providers.

They've set the game pieces, I wonder what the BoE's counter move will be, I guess we'll have to wait till 2019 when the plans for the RTGS are released :D

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To that point, the more XRPs are worth the deeper liquidity (sort of).

If unit trading volumes are held consistent, a more expensive XRP deepens liquidity. This is why I think Miguel said in that video a while back, something like if XRP was at $70 the liquidity issues would be addressed.

If unit trading volumes go down, as value rises, then the liquidity available remains stagnant. 

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31 minutes ago, KarmaCoverage said:

To that point, the more XRPs are worth the deeper liquidity (sort of).

If unit trading volumes are held consistent, a more expensive XRP deepens liquidity. This is why I think Miguel said in that video a while back, something like if XRP was at $70 the liquidity issues would be addressed.

If unit trading volumes go down, as value rises, then the liquidity available remains stagnant. 

Profit takers though worry me. How long will it take for the weak hands to be shaken out of the market until seasoned investors take over. Every mile stone will always have resistance and I don't see $70 any time soon but I'd love to be wrong as I stand to gain a lot ?

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On 9/27/2018 at 10:59 AM, GrayFox said:

The Synchronisation Operator would have permissions to earmark* and order the transfer of funds between participating institutions’ accounts in RTGS, but would not hold an account

Isn't this sorta what SIAM Commercial Bank doing with Ripple's multi-hop feature on RippleNet?:

Quote

Starting today, Siam Commercial Bank (SCB) will be the first financial institution on RippleNet to pioneer a key feature called “multi-hop”, which allows them to settle frictionless payments on behalf of other financial institutions on the network. This eliminates the need for a direct one-to-one connection (or bilateral relationship) between financial institutions to settle a payment. Using multi-hop, SCB will be able to receive and forward on a payment without a bilateral relationship between the originator and beneficiary institutions.

 

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9 hours ago, King34Maine said:

Isn't this sorta what SIAM Commercial Bank doing with Ripple's multi-hop feature on RippleNet?:

 

Yes, it does sound eerily similar. One of the key takes from the new RTGS  is to open up central bank money and completely overhaul the monopoly that big banks have through open banking and PSD2. Imagine Amazon, Apple, Google and SMEs having the ability to settle their affairs without the need to go through HSBC, Barclays, RBS etc. Amazon could provide basic banking services for its customers and vendors. SMEs collectively contribute a lot to the GDPs across the globe and giving them the freedom from the banking cartel might give us the next big step in globalisation. 

 

When Ripple said they were targeting SMEs and some of us were upset that they weren't targeting big banks anymore, I chuckled. It was a brilliant tactical decision to go for the source of the water instead of the estuary. Here's an excerpt from the World Bank:

Quote

Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries.  Formal SMEs contribute up to 60% of total employment and up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included.  According to our estimates, 600 million jobs will be needed in the next 15 years to absorb the growing global workforce, mainly in Asia and Sub-Saharan Africa. In emerging markets, most formal jobs are generated by SMEs, which also create 4 out of 5 new positions. However, access to finance is a key constraint to SME growth. Without access to capital, many SMEs languish and stagnate. 

And Ripple is targeting that^


https://www.worldbank.org/en/topic/smefinance

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16 hours ago, KarmaCoverage said:

To that point, the more XRPs are worth the deeper liquidity (sort of).

If unit trading volumes are held consistent, a more expensive XRP deepens liquidity. This is why I think Miguel said in that video a while back, something like if XRP was at $70 the liquidity issues would be addressed.

If unit trading volumes go down, as value rises, then the liquidity available remains stagnant. 

Hey, @KarmaCoverage this conversation brought back to mind a previous topic/discussion (different context) that you brought up about the advent of Narrow Banks and Segregated Balance Accounts to increase competition and distribution of interest rates or IOERs of which only large FIs/Banks benefit from. I'm wondering if the BofE is considering developing something along these lines because they could facilitate this themselves instead of having yet another intermediary/correspondent bank (i.e. Narrow Bank). That way they can just by-pass the middle-man. Central banks already have the architecture in place it's almost just a matter of opening up the gates to SMEs IMHO. 

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"Synchronization"....? huh... dunno what I think about that... but they certainly do need to change words!

Note the chart cross (~1998) and the peak (~2007) of and for both "modernization" and "globalization":

https://books.google.com/ngrams/graph?content=globalisation%2Bglobalization%2BGlobalisation%2BGlobalization%2Cmodernization%2BModernization%2Bmodernisation%2BModernization&year_start=1929&year_end=2008&corpus=15&smoothing=0&share=&direct_url=t1%3B%2C(globalisation %2B globalization %2B Globalisation %2B Globalization)%3B%2Cc0%3B.t1%3B%2C(modernization %2B Modernization %2B modernisation %2B Modernization)%3B%2Cc0

(Yeah, I'm a bit of a word nerd... wish Goog would show usage past 2008!)

Edited by NightJanitor

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I am not a fan of creating new topics for the same subject so here goes! Just received an email update from the Bank of England in regards to synchronisation. Check out the wording on the document, feels like they spoke to Ripple a lot!

https://www.bankofengland.co.uk/-/media/boe/files/payments/rtgs-renewal-programme/rtgs-renewal-synchronisation-engagement-update.pdf

 

 

Is there a Demand.JPG

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