Jump to content
curvicurvi

CROSS-BORDER INTERBANK PAYMENTS AND SETTLEMENTS

Recommended Posts

Guys, here is an extremly interesting document => http://www.mas.gov.sg/~/media/ProjectUbin/Cross Border Interbank Payments and Settlements.pdf

Found by Michael del Castillo@DelRayMan, credit to him.

Do you think that XRP could be the “universal” Wholesale CBDC (U-W-CBDC) used in the Model 3c ?

Thanks in advance for your returns.

 

Share this post


Link to post
Share on other sites

I think XRP and other non-correlative digital assets could be in that basket of currencies.  That seems to be what the IMF has alluded to in its positive comments on the digital space.  But I have no real idea what is to come with this.  The world financial landscape is changing beneath our feet. 

Share this post


Link to post
Share on other sites
18 minutes ago, xrphilosophy said:

I think XRP and other non-correlative digital assets could be in that basket of currencies.  That seems to be what the IMF has alluded to in its positive comments on the digital space.  But I have no real idea what is to come with this.  The world financial landscape is changing beneath our feet. 

Agree, one dark horse mentioned...but wont hold my breath on it.

 

"Finally, while this report has focused on change driven through revolution in the central payment infrastructures, further thinking could be done on how policy-makers and industry could work together on private sector innovation to address, in the shorter term, the challenges faced by users of cross-border payments identified in this report."

Edited by Vvittin

Share this post


Link to post
Share on other sites
57 minutes ago, curvicurvi said:

Guys, here is an extremly interesting document => http://www.mas.gov.sg/~/media/ProjectUbin/Cross Border Interbank Payments and Settlements.pdf

Found by Michael del Castillo@DelRayMan, credit to him.

Do you think that XRP could be the “universal” Wholesale CBDC (U-W-CBDC) used in the Model 3c ?

Thanks in advance for your returns.

 

The way it’s described in the paper, they are definitely not discussing crypto. They are saying a basket of central bank digital currencies - basically exactly what the SDR (special drawing rights) currency is today.

That said, the paper describes the many benefits of that model followed by the down side. All of the down side arguments are solved if they use XRP instead of something similar to SDR. I think it’s a great argument for XRP but the paper is not describing a crypto/XRP.

Share this post


Link to post
Share on other sites

I hardly understand this subject but I did read this on another thread from JC Collins on another thread https://philosophyofmetrics.com/xrp-the-standard/
 

Quote

 

The SDR from inception was built as a value-composition of the top global reserve currencies.  This is an important distinction.  The SDR is not supported by a basket of currencies.  It is, in fact, the basket.  No basket - no SDR.  It is an alternative reserve asset which is not a currency, but it does serve as a claim on currency held by IMF members.  We will come back to the SDR further down. .....

........

The SDR can evolve to accommodate some of the reserve functions but would not be able to provide the level of liquidity needed to meet global growth needs.  This is where the emerging new crypto asset class will integrate with, and eventually surpass, the traditional monetary system built around the central bank model.  

The central bank model began with the Bank of Amsterdam in 1603 and continued with the Bank of England in 1693.  The new central bank liquidity funded the Industrial Revolution and spurred economic growth for centuries.  This model is built around the expansion and contraction of credit based money supplies, or fiat currencies.  The last reiteration of this model can be found in the Bretton Woods dollar standard, and as multiple crises over the decades attest, the model is no longer capable of providing the liquidity required to drive global growth in the 21st Century.  

The four functions of a reserve currency should be segregated and given to different supra-sovereign assets.  As an example, the function of providing a cross-border payment settlement standard is now incrementally being shifted towards a more effective and efficient model developed by the company Ripple.  Ripple has built a blockchain distributed ledger technology which can leverage its native digital asset XRP to facilitate a cost-effective and almost immediate transaction of cross-border payment settlement.  Central banks, large commercial banks, global institutions, and cross-border payment service providers are all beginning the transition to the Ripple technology.  

The broad integration of XRP into the cross-border payment settlements function would remove a tremendous amount of international pressure from the USD.  This would allow for an increased reduction of USD denominated foreign exchange reserves and begin the process of correcting the monetary imbalances.  The moment I grasped what Ripple was building with XRP and the Interledger Protocol was the moment I understood how it would fit into the international monetary system, and why its ascension was inevitable.  

But this still leaves three other reserve currency functions which need to be considered. Providing global liquidity through financial assets and investment products is still likely to remain with political credit-based currencies, as each nation will continue to promote financial products denominated in its own domestic asset.  This is how it should remain for the foreseeable future, as a nation's growth and interaction with the international system will be the largest contributor to both global growth and liquidity.  

Neither the SDR or XRP, by themselves, or with each other, would be able to provide the gigantic amount of global liquidity which will be required to drive 21st Century growth.  National currencies, presumably in a new digital version, will interact seamlessly within the new decentralized crypto-based monetary and financial systems.  XRP and Interledger will provide the bridge to transfer value from asset to asset within the system.

The SDR could be used to provide the other reserve currency functions which are currently the responsibility of the USD.  Providing a benchmark for raw commodities and serving as an exchange rate pegging mechanism to handle the accounting function of global trade and commerce is something which a broader and more reformed SDR could accommodate.  Managing Director of the IMF Christine Lagarde has even suggested that a digital version of the SDR could provide greater benefits to the global economy, and for sure, she is right.  Based on what we have broken out above, a digital SDR would be the natural evolution for the multi-currency value composition and would integrate within the new crypto-based framework, but its function would be separate from that of XRP.  SDR, like other digital assets, would also use XRP and Interledger to transfer value.  

It should be noted that the architecture for this new crypto-based monetary and financial standard is being built now as I type these words.  Large commercial banks, stock exchanges, central banks, global institutions, amongst others, are all developing crypto-based extensions of their existing services and products.  It’s no longer a question of maybe, or hopefully, it is just a matter of developing, validating, and implementing the services and products.  With each passing week and month, the world is moving that much closer to the moment of the greatest fulcrum.  With the development and validation of the central bank model throughout the 17th Century, few of the average mass population knew what was happening, or could even have understood it.  A similar pattern is taking place today, as over 90% of the population either does not understand what is taking place or has never even heard of the things we have just reviewed.  That should stand as a statement on our failure as a civilization to educate the mass population on the fundamental and structural components which sustain our shared world. The computer and smartphone are the new printing presses.  With so much information available and shared, its troubling that we find ourselves in such a position of educational deficit.  

 

 

Edited by Julian_Williams

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...