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P3T3RIS

XRapid ONLY uses XRP as counter currency

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1 hour ago, P3T3RIS said:

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

”Banks 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.”

 

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 

Sounds like half a step away from XRP becoming the world accounting currency of in-house and international banking?  If that happens you make another half step and value all commodities and stock in XRP.

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7 minutes ago, Cobalt said:

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?

Not only, but, yes, correct, JK has elaborated on it once - https://www.quora.com/If-a-large-amount-of-banks-were-to-adopt-xrapid-and-started-using-xrp-how-would-that-impact-the-tokens-value

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5 minutes ago, WillGetThere said:

Quoting from DS' Quora post: "they can use XRP to make cheap payments. Why? Because if those payments are using xRapid, they can just use the “from XRP” half of the payment and roughly halve their costs. Again, this is precisely what xRapid does."

The institutions that already own XRP would be able to save on the "to XRP" half of the payment process and use only the "from XRP" half - does this mean that xRapid would sell the XRPs that these institutions own into the destination ends of the relevant corridors, and, in order to still be able to benefit from ownership of XRPs for future transactions, they would need to be able to buy them back simultaneously (perhaps part of an atomic transaction) in order to avoid the risk of a higher buy-back price?

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24 minutes ago, Julian_Williams said:

Sounds like half a step away from XRP becoming the world accounting currency of in-house and international banking?  If that happens you make another half step and value all commodities and stock in XRP.

Exactly! Look our launch video again 👍🏼

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Just now, P3T3RIS said:

A. Yes, and volumes will be private. Public parts are only exchange - exchange, and since xRapid routes payments through all participating exchanges in corridor in need and can execute payments in parts, it is impossible to keep track of any individual member banks volumes.

There is only 15 XRP for each human, so FOMO will kick in at some point, and that is why I never laugh at any price prediction, no matter how silly they today may seem.

Point A is very interesting. What it means is that we might experience a situation where private-nets are progressively (either planned or unplanned) reconnected to the ILP as and when the participating institutions are ready to be linked to the larger global RippleNet. What are the possible scenarios that can emerge from this, both at the micro (individual) reconnection level and at the macro (collective) level?

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13 minutes ago, Cobalt said:

 does this mean that xRapid would sell the XRPs that these institutions own into the destination ends of the relevant corridors, and, in order to still be able to benefit from ownership of XRPs for future transactions, they would need to be able to buy them back simultaneously (perhaps part of an atomic transaction) in order to avoid the risk of a higher buy-back price?

They will buy receiver’s fiat with that XRP, since in XRPL it is XRP that is the counter currency and counter currency is only used for buying.

for example XRP/USD, you buy with USD. XRP/BTC, you buy with Bitcoin.

xRapid uses XRP as counter currency and therefore fiat is bought with it, and that is why at sender’s end fiat is sold for XRP.

IMO this is vital for all operations for them to be able to be tradeable between all others.

 

and yes, they would hedge their position back from open market at current prices, or they have the possibility for under- or overexposure of XRP and buy it using indicators when the price seems to be undervalued and benefit from there too 

 

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5 minutes ago, Cobalt said:

Point A is very interesting. What it means is that we might experience a situation where private-nets are progressively (either planned or unplanned) reconnected to the ILP as and when the participating institutions are ready to be linked to the larger global RippleNet. What are the possible scenarios that can emerge from this, both at the micro (individual) reconnection level and at the macro (collective) level?

I have had 2 scenarios for adoption; fast and slow. And like you explained it all starts to point to model where all these private networks build their systems as we speak and they then connect each other very xRapidly.

Everything points to this in my mind. Thanks for nice comments @Cobalt

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1 minute ago, P3T3RIS said:

They will buy receiver’s fiat with that XRP, since in XRPL it is XRP that is the counter currency and counter currency is only used for buying.

for example XRP/USD, you buy with USD. XRP/BTC, you buy with Bitcoin.

xRapid uses XRP as counter currency and therefore fiat is bought with it, and that is why at sender’s end fiat is sold for XRP.

IMO this is vital for all operations for them to be able to be tradeable between all others.

and yes, they would hedge their position back from open market at current prices, or they have the possibility for under- or overexposure of XRP and buy it using indicators when the price seems to be undervalued and benefit from there too 

Thanks! Assuming the average participating financial institution intends to minimize their risk exposure where XRP buy-back prices are concerned, we could then safely say that any XRPs that are directly held by them (or indirectly, in proxy, by market-makers) would be effectively removed from available supply for the long-term since each sell into a corridor would be accompanied by a buy either in the same corridor or in another corridor? 

Just now, P3T3RIS said:

I have had 2 scenarios for adoption; fast and slow. And like you explained it all starts to point to model where all these private networks build their systems as we speak and they then connect each other very xRapidly.

Everything points to this in my mind. Thanks for nice comments @Cobalt

The private-nets implementation makes sense, in many aspects - regulatory, operational, etc. With careful planning, individual private-nets could be designed to initially connect only two nodes each and then increase the participating nodes over time to allow fine-tuning based on pilot or real-world usage. Based on the results in terms of performance, reliability, etc, they could then be scaled up quantitatively. Once there are sufficient numbers of private-nets with significant (and meaningful) overlaps in nodes, the larger private-nets could be merged or connected to the ILP.

Thanks for your sharing too! @P3T3RIS

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Yes, I 100% expect them to make both those trades simultaneously to keep balances even. Trading at later moment could start when market is more matured.

They will rather add than reduce their XRP holdings.

Edited by P3T3RIS

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1 hour ago, P3T3RIS said:

I have had 2 scenarios for adoption; fast and slow. And like you explained it all starts to point to model where all these private networks build their systems as we speak and they then connect each other very xRapidly.

Everything points to this in my mind. Thanks for nice comments @Cobalt

Do you think this could occur within a 5 year time frame, if the process has already started? And could we be looking at around 2024/2025 for everything to be connected to the ILP? What's your rough guesstimate in regards to time frame for all of this to fully play out? 

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53 minutes ago, truekumar said:

Do you think this could occur within a 5 year time frame, if the process has already started? And could we be looking at around 2024/2025 for everything to be connected to the ILP? What's your rough guesstimate in regards to time frame for all of this to fully play out? 

Much earlier. This and 2020 are the years of adoption, and then they’re in. Eventually amount ledgers will be in millions, so this just grows in coming decades.

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So , based on this tweet 200 + financial institutions are using a digital asset ( XRP ) in their payment flows, wow , better than ... dozen of banks will use xrp in 2019. now RippleNet include everything, who is using a xrp and who not ??  I don't understand this tweet, sorry

 

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1 hour ago, truekumar said:

Do you think this could occur within a 5 year time frame, if the process has already started? And could we be looking at around 2024/2025 for everything to be connected to the ILP? What's your rough guesstimate in regards to time frame for all of this to fully play out? 

I believe in 10 year that anyone holding 1000 zerps will be a millionaire in terms of USD.  10 Years is part of my plan.  yes I hold a couple more than 1000......but I don't plan on doing anything for the next 10 years. #HODL

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