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P3T3RIS

XRapid ONLY uses XRP as counter currency

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‚ÄúThere are 10^11 stars in the galaxy. That used to be a huge number. But it's only a hundred billion. It's less than the national deficit! We used to call them astronomical numbers. Now we should call them economical numbers.‚Ä̬†
‚Äē¬†Richard Feynman

 

Edited by mandelbaum

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1 minute ago, Magickarp said:

So the title is a claim, the post says a tweet seems to claim it yet the tweet itself isn't posted?

Could you please provide said tweet?

^ This

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1 hour ago, P3T3RIS said:

This is what I have written about this on our Discord today...

‚ÄĚBanks¬†use software only for trading and ledger only when money moves in or out of their bank or consortium.¬†Orderbooks are used in-house and XRP is owned by that unity. Giving value to all currencies they operate in one central exchange.¬†And only when operating with other bank, XRP needs to move.¬†Other than that, it just stays there and gives value to transactions

One step in, one step out. If someone uses fiat in that system as base, it can’t be executed since it would give arbitrage to it, because it is on wrong side of the ticker. Using XRP only blocks that, when there is only one market globally in many exchanges and xRapid sources liquidity everywhere and routes payments using cheapest option.

That closed ledger is just an orderbook where all related banks use XRP to convert fiat to fiat inside their banking network. Like Santander that operates in many currencies uses it as one pool of liquidity to transfer the whole value to another account in another currency. All those banks own some portion of that XRP but they pool it to be used where it is needed. Balance sheets show the total possessions for each bank whenever they want to settle that situation.‚ÄĚ

 

this is extremely good news for us and for banks, since the more they make cross-border payments inside their own banking network in many currencies, the bigger the savings when they hodl enough XRP, because they save the cost and time of entering ledger. Transactions and transition of value are in milliseconds, XRP is not burnt at all, and TPS can be as much as their trading software can handle, but easily hundreds of thousands per second.

This makes banks want to buy and hold XRP because everything is valued in XRP and not in any fiat. XRP as counter currency, as The Base, means that it is needed always when making a conversion because counter currency is the ONLY used asset whenever something needs to be bought.

XRP the Standard 

Can you give us an example of what you mean using some balance sheets?

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13 minutes ago, Wandering_Dog said:

Can you give us an example of what you mean using some balance sheets?

Santander Spain, Santander UK, Santander Brazil, Santander DE.

All own their XRP that is used on orderbooks and then they hedge back their positions on open market to keep balances even.

Not about accounting, but about managing operational funds and removing risks of volatility

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1 hour ago, P3T3RIS said:

this is extremely good news for us and for banks, since the more they make cross-border payments inside their own banking network in many currencies, the bigger the savings when they hodl enough XRP, because they save the cost and time of entering ledger. Transactions and transition of value are in milliseconds, XRP is not burnt at all, and TPS can be as much as their trading software can handle, but easily hundreds of thousands per second.

This makes banks want to buy and hold XRP because everything is valued in XRP and not in any fiat. XRP as counter currency, as The Base, means that it is needed always when making a conversion because counter currency is the ONLY used asset whenever something needs to be bought.

XRP the Standard 

Thanks for sharing! 

Does that mean that:

a. banks can keep their cross-border payments within their private-ledger network when there is a small number of end-points, and eventually would have to link the private nets to the ILP in order to benefit from the much larger set of end-points available on RippleNet (which will also be connected to the ILP)?

b. any future rise in XRP would be due to the reduction in the floating supply due to banks (or market-makers in proxy) keeping an inventory of it for the transactions i.e. it is indirectly (and not directly) due to utility?

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