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Western Union's Ripple Labs Tests Ongoing

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7 minutes ago, princesultan said:

WU would not still be testing something for 3 years if it wasn't interesting

I don't understand why would someone test something for 3 years?? In time span of 3 years technology you are testing can evolve in something else or completely change. I understand one year, but three? no way... someone is messing with us :) 

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1 hour ago, LilBender said:

An NBFI of the size of  WU will not be looking at DA based instant liquidity as a last mile solution

It will be beneficial for them to eliminate their internal NOSTRO accounts, at least partially; not for sending every low value remittance via xRapid

For this purpose, I believe a solution like xVia is more suited for their purpose (Something that was not available in a finished form during the original WU tests)

The regional hub can pool the incoming funds, batch process an xVia payment at regular intervals (Say, weekly) and the country subsidiaries will receive a fresh batchof local fiat with which they replenish their pool. Vice versa for outgoing transfers

That's a grossly simplified example, but in a nutshell, batched internal payments make more sense to them than a customer facing, low value, high frequency one

It all depends on what is going to save them customers and retain or increase profits.

 

Incumbent systems are resistant to change. 

Millennials are going to make a lot of things obsolete and they can get with us or get out of our way.

 

Meanwhile I will be happy accumulating more xrp each month at a price below its intrinsicvalue. 😀

 

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2 hours ago, XRPSlovenia said:

I don't understand why would someone test something for 3 years?? In time span of 3 years technology you are testing can evolve in something else or completely change. I understand one year, but three? no way... someone is messing with us :) 

Can you tell me how long it takes for a bank to upgrade their systems?  I think you may not understand (even as I entirely don't) because we think banks can upgrade systems as quickly as users can update an app - my hunch is that the case is polar opposite.

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Go back and read the article again.

Quote

Says Almeida: “Cryptocurrency might become one more option for a way for assets to be exchanged between people and countries. If that happens we would be ready to launch.”

They're talking about offering various cryptos alongside their long list of fiats.
When they see a large enough adoption, they will launch.

But this has NOTHING to do with using Ripple/xRapid as a remittance solution.
You know, to avoid having all that money tied up in nostro/vostro accounts?
They're well established in their way of running their business,
and have made it pretty clear, that they intend to keep it that way.

While they may add cryptos in the future (crypto to crypto or crypto to fiat transfers), they won't be using XRP as Ripple intended,
as a cross border solution for ALL THEIR TRANSFERS, namely, transferring fiat. (fiat to xrp to fiat)

Edited by increasedwisdom
no FOMO no FUD, just simple boring truth

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9 hours ago, LordVetinari said:

"they have cash at each of these locations" isn't the whole point to avoid prefunding and having cash just sitting around? 

 

This is part of their problem and why it's not beneficial for WU to implement something like xRapid. They have so many brick and mortar locations, kiosks, and collocation deals. Along with employees at each location. 

Solutions like xRapid don't really affect their business model. They have cash at each of these locations and most transfers are done internally on their own rails and ledgers. 

 

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It probably doesn't make sense for the brick & mortar consumer part of their business. At least not within the existing business model.  Except for maybe providing the 'last mile' for Ripplenet participants.

But for WU business & digital solutions, I imagine they could be looking at ways to free-up operating capital in the more exotic corridors.

I think it's interesting in this video how they make a point of mentioning working with Ripple.

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1 hour ago, PG1 said:

It probably doesn't make sense for the brick & mortar consumer part of their business. At least not within the existing business model.  Except for maybe providing the 'last mile' for Ripplenet participants.

But for WU business & digital solutions, I imagine they could be looking at ways to free-up operating capital in the more exotic corridors.

I think it's interesting in this video how they make a point of mentioning working with Ripple.

Seems like the currency conversions will be a lot easier with one central (XRP) hub and each location only has to convert XRP/local currency? There would be a lot less information/variables to track.

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16 hours ago, aye-epp said:

Can you tell me how long it takes for a bank to upgrade their systems?  I think you may not understand (even as I entirely don't) because we think banks can upgrade systems as quickly as users can update an app - my hunch is that the case is polar opposite.

Upgrade is a different thing as testing. I understand that for upgrade you need a lot more time.

But testing... not sure why 3 years. Seems irrational.

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Western Union is already better equipped to solve for such variables because it already moves money across 130 currencies and
devotes substantial resources to all of those three challenges. 
 
This is part of their problem and why it's not beneficial for WU to implement something like xRapid. They have so many brick and mortar locations, kiosks, and collocation deals. Along with employees at each location. 
Solutions like xRapid don't really affect their business model. They have cash at each of these locations and most transfers are done internally on their own rails and ledgers. 

Agreed. They are mainly cash driven at the endpoints and the foreign prefunding is in local cash. XRapid cannot improve the endpoint liquid prefunding, unless local clients make a switch from cash to virtual/digital fiat. This way they could hold just a pile of XRP.
But as long as cash is king, solutions like WU will stay relevant

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11 hours ago, kanaas said:

Solutions like xRapid don't really affect their business model. They have cash at each of these locations and most transfers are done internally on their own rails and ledgers. 

This is kind of what I was addressing in my comment earlier - the internal money conversions must be cumbersome, and could be greatly improved with one hub to their many spokes.

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