Jump to content
Sign in to follow this  
P3T3RIS

XRapid ONLY uses XRP as counter currency

Recommended Posts

Guest
25 minutes ago, Valhalla_Guy said:

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.

I don't understand something. Where did all the yen and pesos go? You've asked twice now about banks running out of fiat. Banks wouldn't be sending local currency. The fiat stays in the local economy. USD stays in the US. Pesos stay in Mexico. They don't want each other's foreign currency. Just like they don't want to sit a pile of foreign currency in Nostro accounts. 

XRP moves and if a bank has it, it will send it somewhere for another transaction. Maybe to Korea where they use KRW, not USD or MXN. Just because XRP land in a Mexican bank doesn't mean it can only be used for MXN. It has value in Germany, or France. It can be valued against another fiat and used in a future transaction to a different country it came from. 

Edited by Guest

Share this post


Link to post
Share on other sites
1 minute ago, LordVetinari said:

I don't understand something. Where did all the yen and pesos go? You've asked twice now about banks running out of fiat. Banks wouldn't be sending local currency. The fiat stays in the local economy. USD stays in the US. Pesos stay in Mexico. They don't want foreign currency. 

absolutely agree - that fiat stays in the local economy is one of the biggest benefits of XRP.  Trade imbalances will become more honestly accounted for in the rates of exchanges between countries, this would be a good thing.  JCCollins has written very eloquently about the problem of using dollars as an international reserve currency and the damage this does to US competitiveness.    

Share this post


Link to post
Share on other sites
40 minutes ago, P3T3RIS said:

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.

Who's account?

40 minutes ago, P3T3RIS said:

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

What does this mean, specifically? How can a bank buy something back instantly, always? Are the other exchanges forced to offer XRP for sale? If an exchange wants to sell something, is there a counterparty forced to buy?

40 minutes ago, P3T3RIS said:

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

I'm not an accountant either, I'm sure we can figure out the basics together, it's super simple. 

Share this post


Link to post
Share on other sites
46 minutes ago, BrownBear said:

Maybe THIS SITE will explain it for you.

Oh... thank you for giving me that link for dummies. i have very rarely been named an idiot, but seems like you see it as your privilege. You’re welcome 👍🏼

XRP UNITED has all cryptopairs towards XRP, so BTC/XRP has XRP as counter currency. What’s your problem in this?

I have explained all the time that xRapid uses XRP as counter currency, what is your problem there?

Are there others here who see my explanation so difficult to understand, and if yes, I try to be more precise in the future.

Anyway, I’d rather not be called by names. Thank you @BrownBear

Edited by P3T3RIS

Share this post


Link to post
Share on other sites

@Valhalla_Guy

they need another prefunded account in a local exchange, where they sell if they get too much XRP on these closed ledger trades.

When XRP comes to them from closed ledger trade, they buy fiat from their orferbooks And give it to receiver.

extra XRP that is now at their possession can be traded for same fiat in other exchange, which balances that amount fiat that was just paid out.

all this can be done automatically

Share this post


Link to post
Share on other sites
21 minutes ago, P3T3RIS said:

Oh... thank you for giving me that link for dummies. i have very rarely been named an idiot, but seems like you see it as your privilege. You’re welcome 👍🏼

XRP UNITED has all cryptopairs towards XRP, so BTC/XRP has XRP as counter currency. What’s your problem in this?

I have explained all the time that xRapid uses XRP as counter currency, what is your problem there?

Are there others here who see my explanation so difficult to understand, and if yes, I try to be more precise in the future.

Anyway, I’d rather not be called by names. Thank you @BrownBear

I didn't call you any names.

My point was you said "for example XRP/USD, you buy with USD. XRP/BTC, you buy with Bitcoin." and then said XRP was the counter currency in that trade. I pointed out the correct way to type it is USD/XRP or BTC/XRP not XRP/USD or XRP/BTC.  You challenged this so I provided you with a online resource that helps novices in the finance sector. If you think that makes you a dummy for being pointed to a legitimate resource,  then the issue lays with your own self worth not me providing you with a link.

Edited by BrownBear

Share this post


Link to post
Share on other sites
1 hour ago, Valhalla_Guy said:

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.

The MXN exchange must then lend the XRP back to the USD exchange, and at the same time the MXN bank must lend more peso reserves to the MXN exchange. 

The MXN exchange can always get more reserves from the Central Bank of Mexico if no one is willing to lend peso reserves. However, there is no lender of last resort for XRP, which means if the MXN exchange won't lend XRP back to the USD exchange then the corridor breaks down. 

This is a problem if there is a large amount of XRP denominated contracts (debt), which there likely will be in the future if the system was ever implemented. We're describing instability associated with a fixed supply settlement asset with no central bank, i.e. the gold standard.  

Edit: the only way the system can sustain itself is if all exchanges work together to pool their holdings of XRP and lend to one another no matter what, which is essentially the Target2 system in Europe. Unlike the pooling between Fed regional banks in the US which saw expanding then contracting balances as fiscal policy helped reduce imbalances, Europe and an XRP pooling system has no fiscal policy--it relies on structural changes (crises) in order for the system to persist (which is politically paradoxical).  

 

Edited by Wandering_Dog

Share this post


Link to post
Share on other sites

I havent read every comment in this thread, but did skim and read JK's posts.

Nothing has even come close to "proving" or even "claiming" that...

Quote

XRapid ONLY uses XRP as counter currency

I've been watching this exact element of the RippleNet system closely.

My best guess is that within xRapids functionality set, the Pathfinding function is preform... and that Pathfinding should be able to tap both Nostro/vostro liquidity, and XRPLedger liquidity, to find the cheapest path through the network.

How this could be done is the subject of my How xPool write up.

---

Regarding the idea that banks may have private networks to communally own and trade XRP, this makes sense.

That is basically how KarmaCoverage is also designed, except each "bank group" ledger, is a value escrowed aginst a specific risk on a "risk ledger".

This would make Scalability = infinite 

Share this post


Link to post
Share on other sites
20 minutes ago, BrownBear said:

I didn't call you any names.

My point was you said "for example XRP/USD, you buy with USD. XRP/BTC, you buy with Bitcoin." and then said XRP was the counter currency in that trade. I pointed out the correct way to type it is USD/XRP or BTC/XRP not XRP/USD or XRP/BTC.  You challenged this so I provided you with a online resource that helps novices in the finance sector. If you think that makes you a dummy for being pointed to a legitimate resource,  then the issue lays with your own self worth not me providing you with a link.

USD/XRP you buy USD with XRP

XRP/USD you buy XRP with USD

BTC/XRP you buy BTC with XRP

XRP/BTC you buy XRP with BTC.

Share this post


Link to post
Share on other sites
Just now, P3T3RIS said:

USD/XRP you buy USD with XRP

XRP/USD you buy XRP with USD

BTC/XRP you buy BTC with XRP

XRP/BTC you buy XRP with BTC.

USD/XRP = XRP is Counter Currency - USD is Base Currency

XRP/USD = XRP is Base Currency - USD is Counter Currency.

 

Please read the site I linked, you seem to not understand these simple terms.

Share this post


Link to post
Share on other sites

@Wandering_Dog both USD and MXN ends buy and sell in their own currency their over- or under supply of XRP.

That does not require anything special. They send XRP in their network between banks and if one end gets too much, it is sold in some other exchange in that area

Share this post


Link to post
Share on other sites
2 minutes ago, BrownBear said:

USD/XRP = XRP is Counter Currency - USD is Base Currency

XRP/USD = XRP is Base Currency - USD is Counter Currency.

 

Please read the site I linked, you seem to not understand these simple terms.

What are you arguing about my understanding. I have precisely said, USD/XRP it is XRP that is the counter currency that is used for buying.

USD the base currency is bought with XRP that is the counter currency in that pair.

You buy USD with XRP.

I don’t understand you at all.

I have talked the whole time that xRapid uses ONLY XRP as counter currency in all trades.

Share this post


Link to post
Share on other sites
Just now, P3T3RIS said:

I have talked the whole time that xRapid uses ONLY XRP as counter currency in all trades.

No. USD/XRP (XRP Counter Currency) can become XRP/MXN (XRP base Currency)

What part is confusing you the most?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...