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slinuxuzer

Swift & Ripple New Angle

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Appreciate the post; if I am reading it correctly, your main point is that SWIFT & Ripple need not partner at all as SWIFT API will allow use of other services for settlement.  I believe this position has been articulated in a number of places so I'm interested what thread you are referring to.  I like the insight about everything coming online after the transition deadline - rings true.

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Just now, WrathofKahneman said:

Appreciate the post; if I am reading it correctly, your main point is that SWIFT & Ripple need not partner at all as SWIFT API will allow use of other services for settlement.  I believe this position has been articulated in a number of places so I'm interested what thread you are referring to.  I like the insight about everything coming online after the transition deadline - rings true.

Yes the theory has been articulated elsewhere, but I wrote this up to try and clarify it a bit, specifically the question of how the update enables this wasn't being explained clearly and the counter-argument was "The update is just adding tracking" I tried to explain to non-technical folks how this tracking will allow the needed technical bits for a program to determine if it should settle a payment or not. Also, the non-technical folks that haven't been involved in large IT projects weren't fully understanding how the deadline is a factor. And I feel like the theory was getting lost in a circle of "You don't understand" responses, so I'm trying to help people understand, because I think there is possibly some validity to the theory.

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1 hour ago, slinuxuzer said:

P.s. There is another  Commentator that has been raising this theory, but the thread is full of arguing and people not understanding his theory, I give this guy partial credit for raising the theory, I wrote this mainly to try and help him clarify his points. Keep in mind we are all on the same team and I assume we all want XRP to appreciate.

 

I like the theory, just to settle ;) the credit side of it, who was the said commentator?

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Just now, scoobysi said:

 

I like the theory, just to settle ;) the credit side of it, who was the said commentator?

He could probably be found easy enough, I only mention him because I don't want to take complete credit, but I also won't give his name, because I think he makes some very irresponsible price predictions and isn't the best thing for the community, so I don't want my name linked to him directly. I debated a lot about weather to even write this post for that reason, but I felt like the half a theory that was out there was doing more harm than good.

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On 10/17/2018 at 9:47 AM, Ryyy20 said:

Payments as a Service is huge for cloud. This is the “SWIFT” integration you all have been waiting for. I expect to hear from others like SAP and Temenos regarding their Payments as a Service platforms as well. 

https://www.finextra.com/pressarticle/75908/volante-technologies-launches-payments-as-a-service-on-microsoft-azure-for-fimbank

 

For those wondering how Ripple and Volante are connected: http://www.volantetech.com/about/media/press-releases/ripple-integration/

 

Huge step for the IOV...

 

I brought this up a few weeks back when Volante released their “Payments as a Service” but I probably wasn’t as clear as you were up top. Great explanation! 

 

 

Edited by Ryyy20

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41 minutes ago, slinuxuzer said:

Yes the theory has been articulated elsewhere, but I wrote this up to try and clarify it a bit, specifically the question of how the update enables this wasn't being explained clearly and the counter-argument was "The update is just adding tracking" I tried to explain to non-technical folks how this tracking will allow the needed technical bits for a program to determine if it should settle a payment or not. Also, the non-technical folks that haven't been involved in large IT projects weren't fully understanding how the deadline is a factor. And I feel like the theory was getting lost in a circle of "You don't understand" responses, so I'm trying to help people understand, because I think there is possibly some validity to the theory.

You sir, are excellent at communicating complex ideas in a straightforward manner.  I really like your post.

i would like to add one further possibility...   even after a deadline there are sometimes failures to comply, or reversions backwards for some reason.  So a third party settlement service might add on a dust settling period before firing up the engines.  It doesn't need to be long though because this is a binary kind of thing...  Compliant, or not... and it's probably easy to detect compliance.

So it's also possible there is no need for a dust settling period since compliance can be detected, and non-compliant entities ignored.  Just wanted to mention the possibility of a lag time.

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3 minutes ago, Ryyy20 said:

 

I brought this up a few weeks back when Volante released their “Payments as a Service” but I probably wasn’t as clear as you were up top. Great explanation! 

 

 

Well, keep in mind that what we are really interested in is settlement, IMO Swift will provide this third-party integration allowing settlement providers to integrate, because if they don't then customers will start switching to a solution that can offer both payment and settlement. If I can achieve both without leaving Swift, then that makes it much much less likely for me the customer to go through the pain of leaving Swift.

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I think this theory makes a lot of sense and seems to be a direction where both SWIFT and Ripple can coexist.The U.S. uses SWIFT to enforce sanctions and uses it as leverage for various other political reasons and they definitely will not want  to lose control of that. 

I find it interesting too how often Ripple references the word "Rails" when describing the outdated payment infrastructure used currently. Rails would seem to indicate the underlying settlement infrastructure banks use in conjunction with the SWIFT messaging system. Companies, SWIFT, and Government entities will build the outer shell of the messaging system which is then in turn is powered by RippleNet (xRapid). It seems as though Ripple is building the rails (RippleNet) for trains (Corporations, SWIFT, Government Entities) to operate on. 

https://ripple.com/insights/ripple-ceo-money20-20-europe-blockchain-hype-outpaces-reality/

Garlinghouse explained. “If you can reset the rail – the base layer – you can really unlock innovation.” In this way, Ripple is just an enabler, a new base layer on which others can build.

“As a society, we are relying on rails built 50 years ago to enable cross-border transactions,” said Garlinghouse

image.thumb.png.203e07735c6ffb27e66130a5841de35e.png

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2 minutes ago, Tinyaccount said:

You sir, are excellent at communicating complex ideas in a straightforward manner.  I really like your post.

i would like to add one further possibility...   even after a deadline there are sometimes failures to comply, or reversions backwards for some reason.  So a third party settlement service might add on a dust settling period before firing up the engines.  It doesn't need to be long though because this is a binary kind of thing...  Compliant, or not... and it's probably easy to detect compliance.

So it's also possible there is no need for a dust settling period since compliance can be detected, and non-compliant entities ignored.  Just wanted to mention the possibility of a lag time.

There are absolutely other factors, such as what you stated. Lets say all this theory is true, you still need liquidity providers for the corridors, either in the way of market makers, or crypto exchanges to provide the liquidity. Next you need customers to change their settlement process, that is easy enough because we all believe there is a compelling business case to use XRP Vs. the legacy Nostro/Vostro, but my overall point is, even if this is true, don't expect an instant moonshot at the stroke of midnight, how long will it take? Who knows?

But if XRP can actually be exposed to Swift payments in this way, then I like XRP more than I did yesterday.

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1 minute ago, slinuxuzer said:

There are absolutely other factors, such as what you stated. Lets say all this theory is true, you still need liquidity providers for the corridors, either in the way of market makers, or crypto exchanges to provide the liquidity. Next you need customers to change their settlement process, that is easy enough because we all believe there is a compelling business case to use XRP Vs. the legacy Nostro/Vostro, but my overall point is, even if this is true, don't expect an instant moonshot at the stroke of midnight, how long will it take? Who knows?

But if XRP can actually be exposed to Swift payments in this way, then I like XRP more than I did yesterday.

If this is correct, could we also see Hyperledger settle with XLM as an option? 

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2 minutes ago, XRPfan1013 said:

I think this theory makes a lot of sense and seems to be a direction where both SWIFT and Ripple can coexist.The U.S. uses SWIFT to enforce sanctions and uses it as leverage for various other political reasons and they definitely will not want  to lose control of that. 

I find it interesting too how often Ripple references the word "Rails" when describing the outdated payment infrastructure used currently. Rails would seem to indicate the underlying settlement infrastructure banks use in conjunction with the SWIFT messaging system. Companies, SWIFT, and Government entities will build the outer shell of the messaging system which is then in turn is powered by RippleNet (xRapid). It seems as though Ripple is building the rails (RippleNet) for trains (Corporations, SWIFT, Government Entities) to operate on. 

https://ripple.com/insights/ripple-ceo-money20-20-europe-blockchain-hype-outpaces-reality/

Garlinghouse explained. “If you can reset the rail – the base layer – you can really unlock innovation.” In this way, Ripple is just an enabler, a new base layer on which others can build.

“As a society, we are relying on rails built 50 years ago to enable cross-border transactions,” said Garlinghouse

image.thumb.png.203e07735c6ffb27e66130a5841de35e.png

One thing I will say, the idea that forcing Iran to use RipplNET because they have been sancationed off Swift being a good thing for Ripple/XRP is complete non-sense. The very very last thing all of us should be hoping for is a sanctioned nation to choose Ripple as an alternative. IMO we want no reason for the US Government to see Ripple as a threat to its political goals and raging against the machine or "down with banks, down with Governments" is best left the the BTC crowd.

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14 minutes ago, slinuxuzer said:

I only mention him because I don't want to take complete credit, but I also won't give his name

Not trying to cause trouble or take away from your excellent & simply put description of such potentials, but if you don't mention them then you aren't giving any credit?

Anyway enough pedanticism around the credit side, love the theory either way.

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