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P3T3RIS

XRapid ONLY uses XRP as counter currency

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hello friends .... I read all the thread and I was amazing.

although many questions of the technical part I do not understand. ...excuse my ignorance....

Would someone be so kind as to make a brief summary of what has been said so far ...?

simple. simple . For me, I'm a bit of a donkey.

Thanks guys. a big hug

I keep hold

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4 minutes ago, Cesar1810 said:

hello friends .... I read all the thread and I was amazing.

although many questions of the technical part I do not understand. ...excuse my ignorance....

Would someone be so kind as to make a brief summary of what has been said so far ...?

simple. simple . For me, I'm a bit of a donkey.

Thanks guys. a big hug

I keep hold

They are fundamentally saying that .. in the future the xrp price will be huge, but despite all these improvements, price is still shi tty  and on the hands of all  the big whales , we ( investors in xrp tokens ) , we need to be patient and wait for a better future, have faith and hope, and maybe, maybe , something will change on the market. ( waiting for other answers , this my point of view )

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7 minutes ago, BibleChronologyXRP said:

Básicamente, están diciendo que ... en el futuro, el precio xrp será enorme, pero a pesar de todas estas mejoras, el precio sigue siendo bajo y en manos de todas las grandes ballenas, nosotros (los inversores en tokens xrp), debemos estar Paciente y espere un futuro mejor, tenga fe y esperanza, y quizás, quizás, algo cambie en el mercado. (esperando otras respuestas, este es mi punto de vista)

I liked!

very good point and positive ...

I believe that as the world moves today, everything will be much faster than we expect!

I hope to start a bull run for xrp that lasts the whole year.

so we rest;)

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1 hour ago, Julian_Williams said:

I think the point of XRP is that it is a token that is measured against all currencies, so a bank can do all its transactions/bookeeping in one currency.  The fiat currencies will still be needed for National audits and chancelleries, and be the currency in which wages are paid and goods bought locally.  The Banks would not have to have such a huge amount of capital locked up to make the system work, because they can have a single stockpile of XRP which can be used and traded in the local currency in any country of the world.  A US Bank with XRP in the US can trade in XRP/YEN in real time, so it no longer needs a vostro nostro account with a pile of Yen in Japan.  XRP is very liquid and crosses borders in real time.  US dollars have to be put in a plane, carried to Japan, Exchanged for Yen and kept in a pile in Japan.

Ok, if XRP is not required “on the street” who sets the value? (“Measured against all currencies” what does that even mean?) Banks can’t simply set the value one day, and expect it to hold forever. The only way settlements happen “instantly” is if there is massive liquidity at each end, otherwise the only thing crossing the border instantly is the “message” not the value.

What happens when the Japan bank needs more YEN but only has 1Billion XRP. Who buys the XRP using YEN, and why would they buy it, if it has no street value/utility on the streets in Japan?

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6 hours ago, P3T3RIS said:

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

Yes of course. Can you show us what this looks like on some representational balance sheets?

Edit: For clarification, I don't understand the sentence, an example would likely help. For example, if someone owns their xrp, they have an asset on their balance sheet, XRP, and on the XRP ledger they have an account (wallet) with that amount in it. 

But, when you say they "hedge back their positions on open market to keep balances open", is there a particular instrument they are using? What type of hedge?

Or when you say its "about managing operational funds", do you mean fiat funds? In which balance sheets?

Edited by Wandering_Dog

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15 minutes ago, Valhalla_Guy said:

Ok, if XRP is not required “on the street” who sets the value? (“Measured against all currencies” what does that even mean?) Banks can’t simply set the value one day, and expect it to hold forever. The only way settlements happen “instantly” is if there is massive liquidity at each end, otherwise the only thing crossing the border instantly is the “message” not the value.

What happens when the Japan bank needs more YEN but only has 1Billion XRP. Who buys the XRP using YEN, and why would they buy it, if it has no street value/utility on the streets in Japan?

As I understand it ~(I am not a bookkeeper, so this is my interpretation.  Someone correct me if I am wrong):  The value of XRP is still set by the exchanges and market makers. Banks will sometimes top up or sell excess XRP in their local currencies, other times they move value around internally (and between departments on their internal international ledgers ) without ever buying or selling on an external exchange.  The internal bookkeeping is perhaps often a closed system, but the bank continues to interact with the real world and the value of XRP in the real world.  Even when they move value around internally they still benchmark the value of their privately owned XRP against what is happening to the value of XRP on the open market.

Edited by Julian_Williams

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15 minutes ago, Wandering_Dog said:

Yes of course. Can you show us what this looks like on some representational balance sheets?

Edit: For clarification, I don't understand the sentence, an example would likely help. 

I would place it in accounting just like any fiat account and use it as a means of payment and check the balance at the end of month. Just like cash on account. This is how I would currently do it without asking anyone.

Closed ledger (banks orderbooks) can include all their fiat pairs towards XRP and each currency area can set up their own pair in there. Then transactions are just directed through that exchange software. Value is taken towards XRP on each pair. USD/XRP, MXN/XRP, EUR/XRP and so on.

costs of transaction are then directed to each member according to their volume. Even though, since it is a closed orderbook, transaction costs can be set to zero.

Some ends get more XRP, some less, but they all can instantly buy it back or sell it in another exchange on open market.

Like I said I am no accountant, but if I need one or ten, I hire them. So who cares how it needs to be done, since State Revenue Service will give final answer to it after tax inspections

Edited by P3T3RIS

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I know many are skeptical about SBI. Whether their plan happens is yet to be seen. I'm not chiming in to toot their horn. 

However, if there's one group that has laid out a plan similar to what is be discussed in this thread, it's SBI. The bank and exchange will be connected. The bank will use xrp for banking transactions and the exchange will provide a market for retail investors, market makers and the bank itself. 

Edited by LordVetinari

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1 minute ago, zenkert said:

But, but, they buy xrp with FIAT, don´t they?

Definitely when stack up. But in their closed orderbooks they buy fiat with XRP, since it is the counter currency.

If they get too much XRP, they can instantly sell it for XRP in some other exchnage in their area and balance the amount fiat. This can be done automatically. Amounts XRP always then stays the same, but they need 2 accounts for that, both off-ledger. One in their closed exchange and one outside.

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2 hours ago, P3T3RIS said:

What you refer to, I don’t quite understand?

Where it should read USD/XRP, when I was saying that you do NOT buy with XRP in those pairs?

In XRPL counter currency always is XRP, which is the way all cryptopairs are in XRP UNITED exchange for example. You buy with countercurrency always, but maybe I misunderstand your point here 👍🏼

Maybe THIS SITE will explain it for you.

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8 minutes ago, Julian_Williams said:

As I understand it ~(I am not a bookkeeper, so this is my interpretation.  Someone correct me if I am wrong):  The value of XRP is still set by the exchanges and market makers. Banks will sometimes top up or sell excess XRP in their local currencies, other times they move value around internally (and between departments on their internal international ledgers ) without ever buying or selling on an external exchange.  The internal bookkeeping is perhaps often a closed system, but the bank continues to interact with the real world and the value of XRP in the real world.  Even when they move value around internally they still benchmark the value of their privately owned XRP against what is happening to the value of XRP on the open market.

Do you realize when you say the value will be set by the exchanges, this is a direct contradiction to the statement that XRP is not needed, on the streets in Japan? (or any nation) 

Who then is exchanging YEN for XRP, on the “exchange” you mention? How do banks offload xrp? This simple fact explains why there are no XRP cross border exchanges between US and MEX. xRapid requires massive street demand (liquidity) or “Bi-directional” cross border flow for the model to work. There will never be enough Mex to USD transfers to offset the USD to Mex flow. Mex Banks would quickly run out of pesos, and be stuck with a vault full of XRP. They need to pay their taxes in Pesos, so eventually they will have to reconcile, and with no local demand, reconciliation will be painful.

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