Can XRP work without crypto exchanges?

[Atomic1221 819]

I was wondering if there was a way if XRP could work without cryptocurrency exchanges. Maybe a traditional bank or a large corporate structure takes over the exchange's role in xRapid. In the simplest case, imagine say Google had an exchange for all fiat currencies and XRP. No other cryptos. Would this work? Nothing would stop multiple companies doing this as well. A large multi-national firm could even use their international payment accounts to self fund a large chunk of the initial currency investment. 

I'm mentioning this because it could be the fastest way to get off the Bitcoin leash. I'm wondering if anyone has given this any serious thought. 

[Guest]

I think financial service companies will stick to their core competencies. Places like Fidelity or TD that already offer online brokerage accounts. I can't see Alphabet doing a foray into that environment. Still need the retail avenues whether it's a crypto exchange or an online brokerage offering crypto. 

[Atomic1221 819]

2 minutes ago, 7Bs said:

I think financial service companies will stick to their core competencies. Places like Fidelity or TD that already offer online brokerage accounts. I can't see Alphabet doing a foray into that environment. Still need the retail avenues whether it's a crypto exchange or an online brokerage offering crypto. 

My point being is at some point won't XRP be sufficiently differentiated that the old decision to just hop onboard the crypto exchange infrastructure no longer makes sense? 

How inherently dependent are we on crypto exchanges? 

Edited December 27, 2018 by Atomic1221

[Guest]

That depends on regulation specifics. But I heard there were once 'gateways' first to buy XRP which most no longer exist. Ideally, we could just go to a bank offering an XRP denominated account. I'm sure it will evolve pretty significantly over these next couple years.

[jcdenton 514]

1 hour ago, Atomic1221 said:

imagine say Google had an exchange for all fiat currencies and XRP

It wouldn't be 1 exchange; there would need to be dozens and dozens in different countries. Imagine the PITA. Google likes Delaware and Ireland and not much else. 

Western Union or Moneygram would be perfect for this. Turns out from their investor calls that they're a little bit antsy about competing down their own profit margin and were probably moving a little bit slower than Ripple would like.

Ripple working more closely with individual crypto exchanges is supposed to light fire under their bottoms. I bet the exchanges make the markets as well. 

The idea is to bootstrap volume until you're impossible to ignore. Local all-crypto exchanges are perfect for this. It isn't necessary to exclude other cryptos. All fees from all volume can go equally towards solving regulatory challenges in their jurisdiction. 

[P3T3RIS 835]

All banks will be exchanges, so answer to original question is yes.

[LanaVeil 22]

All the trading bypassing the crypto exchanges sounds impossible to me now.

We can speculate on how it will turn out to be in the future but now it's not even possible from a technical point of view, not talking about laws, regulations and taxes.

[KarmaCoverage 4,179]

The alternative to Exchanges, is on ledger issued IOUs.

The on ledger Pathfinding algo will preform the routing function that xRapid does in an ILP world.

Synthetic Orderbooks was the ammendment that instituted that.

[Xrpforme 119]

On 12/27/2018 at 4:23 PM, Atomic1221 said:

I was wondering if there was a way if XRP could work without cryptocurrency exchanges. Maybe a traditional bank or a large corporate structure takes over the exchange's role in xRapid. In the simplest case, imagine say Google had an exchange for all fiat currencies and XRP. No other cryptos. Would this work? Nothing would stop multiple companies doing this as well. A large multi-national firm could even use their international payment accounts to self fund a large chunk of the initial currency investment. 

I'm mentioning this because it could be the fastest way to get off the Bitcoin leash. I'm wondering if anyone has given this any serious thought. 

I’ve thought about this at length. Pure speculation, but I believe that exchanges will ultimately be bought by banks to win client base. When looking at XRP, I think the exchanges exist in the short to mid term for 2 reasons:

1) Banks are waiting for green light on regulation and will then start making it convenient to hold and transfer certain DAS like XRP. 

2) Exchanges are needed now also to help mitigate volatility risks. Once price is established/fixed/elevated for proper liquidity, then banks could hold directly without worry of volatility risks. Ie. lost money on conversion and transfer. 

I think we are 1-2 years away from being able to log in to your bank or brokerage account and see certain crypto holdings. Oh, and maybe exchanges could survive to trade crypto for new or risky projects that don’t pass a bank lithmus test, but I still think banks could start to buy out the most secure and reputable exchanges.  

Edited December 29, 2018 by Xrpforme

[P3T3RIS 835]

@Xrpforme

Earthport is a good example how this plays out. Visa gets all connections at once using their prefunded accounts, acting as an exchange. Hank Uberoi already said they will connect all relevant ledgers their customers want to use. Not long until all banks join or they give their profits to others.

[jargoman 849]

https://xrpcharts.ripple.com/#/markets/ETH:rcA8X3TVMST1n3CJeAdGk1RdRCHii7N2h/XRP?interval=30m&range=1w&type=candlestick

That's the on ledger orderbook, chart and tx history for ETH/XRP trading pair. The rcl is an exchange and XRP is it's native currency. 


Off chain trading on exchanges helps mitigate the strain placed on the ledger so they are a good thing. 

Edited December 29, 2018 by jargoman

[P3T3RIS 835]

XRPL trading won’t help much without conversion to fiat on receiver’s end at some point. You can receive crypto, you can spend crypto, but at some point in chain someone needs to convert it to fiat and this is where Earthport is truly opening path for others.

”relevant ledgers” I really like... so many ICO’s and coins without utility are doomed and I see this happening either before next bull run or simultaneously with it