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P3T3RIS

XRapid ONLY uses XRP as counter currency

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16 minutes ago, KarmaCoverage said:

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...

If banks use closed ledgers in their own trading between their own banks, how can they step out of that ledger without one extra step to XRP if counter currency that denominates all trades changes in between? They can not, which points to XRP being the only capable countercurrency that can operate between all currencies in closed ledger and in open ledger. No need to make any conversion in that phase, when closed ledger transaction turns to open ledger transaction.

one step in from fiat - transaction to other end in closed or open ledger - one step out.

This is the basis for my findings.

Why use other asset when XRP already is in both ledgers making instant conversions?

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5 minutes ago, BrownBear said:

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

What part is confusing you the most?

At what point of transaction would that happen? If orderbooks that are used are XRP based and not fiat based, there is no other counter currency besides XRP anywhere in that chain.

There is no change in xRapid that receiver would receive XRP and if they would, it would not be priced in MXN but in XRP

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10 minutes ago, P3T3RIS said:

If banks use closed ledgers in their own trading between their own banks, how can they step out of that ledger without one extra step to XRP if counter currency that denominates all trades changes in between? They can not, which points to XRP being the only capable countercurrency that can operate between all currencies in closed ledger and in open ledger. No need to make any conversion in that phase, when closed ledger transaction turns to open ledger transaction.

one step in from fiat - transaction to other end in closed or open ledger - one step out.

This is the basis for my findings.

Why use other asset when XRP already is in both ledgers making instant conversions?

Yeah that all makes sense.

It is the equivalent of the banks running a private institutional exchange.

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8 minutes ago, P3T3RIS said:

At what point of transaction would that happen? If orderbooks that are used are XRP based and not fiat based, there is no other counter currency besides XRP anywhere in that chain.

There is no change in xRapid that receiver would receive XRP and if they would, it would not be priced in MXN but in XRP

Are you trolling? I did link to you a site that explains what a COUNTER currencies and what BASE currencies are.
I give up. You simple are incapable of understanding the difference.

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1 hour 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 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. 

Where do the Pesos go??? Seriosly? The Pesos go to the MEX Bank’s customer (Whomever the US bank’s customer is sending the money to). How else can USD be transferred to MEX pesos, without actually giving REAL pesos to the end customer? The bank in MEX must provide the pesos, by either “exchanging” the freshly received XRP for new Pesos (LIQUIDITY) or by holding the newly received XRP and supplying their own pesos from their own stash. (in which case they become the exchange, and will eventually run out of pesos, and be full of XRP)

Don’t forget, it’s the “value” that needs to be transferred to the Mex bank’s customer, not just the promise. The mex bank’s customer ONLY values PESOS, because he needs to buy eggs, on the way home from the bank, and the local markets ONLY take Pesos.

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1 minute ago, BrownBear said:

Are you trolling? I did link to you a site that explains what a COUNTER currencies and what BASE currencies are.
I give up. You simple are incapable of understanding the difference.

Have I not been saying the whole time that xRapid uses only XRP as counter currency because of the reasons I just wrote when replied to KarmaCoverage.

I’m fine being incapable in your opinion and I hope XRP will be a life changing trip to both of us 🤗

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Just now, Valhalla_Guy said:

. (in which case they become the exchange, and will eventually run out of pesos, and be full of XRP)

 

They are the exchange, all the banks that they have in different currency areas are joined to that closed-ledger exchange 

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Just now, P3T3RIS said:

Have I not been saying the whole time that xRapid uses only XRP as counter currency because of the reasons I just wrote when replied to KarmaCoverage.

 

It doesn't You're wrong. I explained it several times, I gave examples AND provided a link. The fact your run an exchange is scary.

I'll say it ONCE MORE.

Buy XRP using USD (USD/XRP) = USD is BASE Currency and XRP is a Counter (quote) Currency aka how many USD can buy XRP - 1 USD/ 3 XRP

>>> Send XRP to mexico >>>

SELL XRP to buy MXN (XRP/MXN) = XRP is base Currency and MXN is the Counter (quote) Currency. aka how many XRP can buy MXN - 1XRP/$6.30 MXN

This is not a terribly difficult subject. Read the link I provided or stop trolling me. I refuse to believe you are being serious right now.

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26 minutes ago, BrownBear said:

It doesn't You're wrong. I explained it several times, I gave examples AND provided a link. The fact your run an exchange is scary.

I'll say it ONCE MORE.

Buy XRP using USD (USD/XRP) = USD is BASE Currency and XRP is a Counter (quote) Currency aka how many USD can buy XRP - 1 USD/ 3 XRP

>>> Send XRP to mexico >>>

SELL XRP to buy MXN (XRP/MXN) = XRP is base Currency and MXN is the Counter (quote) Currency. aka how many XRP can buy MXN - 1XRP/$6.30 MXN

This is not a terribly difficult subject. Read the link I provided or stop trolling me. I refuse to believe you are being serious right now.

You seem to be an intelligent person and i appreciate your inputs on this chat, but this is not the first time i notice you get aggressive/annoyed quite easily. 

Sometimes something which is very obvious to you is not that obvious to someone else, hence it takes time and efforts to explain it. Sometimes couple of times.

Thanks and have a good day/evening/night.

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10 minutes ago, WillGetThere said:

You seem to be an intelligent person and i appreciate your inputs on this chat, but this is not the first time i notice you get aggressive/annoyed quite easily. 

Sometimes something which is very obvious to you is not that obvious to someone else, hence it takes time and efforts to explain it. Sometimes couple of times.

Thanks and have a good day/evening/night.

Well, it was fine until I was accused of bullying for simply providing a link to an online resource. Maybe if others stop personal attacks when other help them out, people wouldn't get defensive. But hey, thanks for your comment.

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49 minutes ago, P3T3RIS said:

They are the exchange, all the banks that they have in different currency areas are joined to that closed-ledger exchange 

Best thing to do is block BB, this isn't the first time he's been overly aggressive/annoying. You can type out all the information you want in several different ways and it's like talking to a brick wall. Continuously pushes his point regardless of what others are replying back with. Last time he was phased out of the conversation because he was proven by multiple individuals to be wrong after going in circles for pages on pages. Best to just let that conversation go.

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33 minutes ago, BrownBear said:

It doesn't You're wrong. I explained it several times, I gave examples AND provided a link. The fact your run an exchange is scary.

I'll say it ONCE MORE.

Buy XRP using USD (USD/XRP) = USD is BASE Currency and XRP is a Counter (quote) Currency aka how many USD can buy XRP - 1 USD/ 3 XRP

>>> Send XRP to mexico >>>

SELL XRP to buy MXN (XRP/MXN) = XRP is base Currency and MXN is the Counter (quote) Currency. aka how many XRP can buy MXN - 1XRP/$6.30 MXN

This is not a terribly difficult subject. Read the link I provided or stop trolling me. I refuse to believe you are being serious right now.

Your example is correct. But on a different subject, and for the benefit of others can you explain HOW the xrp is converted to pesos for final settlement, to the end user? There is 0 demand for xrp in MEX and close to 0 demand for xfers from MEX back to the US. Where do the Pesos come from?

Basically I am questioning the mechanics of your last step “SELL XRP to buy MXN (XRP/MXN)” That step is accurate, but is much, much easier to say, than to do; and this is the huge elephant sitting in the middle of this party, that everyone simply walks around, and ignores.

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44 minutes ago, BrownBear said:

Buy XRP using USD (USD/XRP) = USD is BASE Currency and XRP is a Counter (quote) Currency aka how many USD can buy XRP - 1 USD/ 3 XRP

Buy XRP using USD, (XRPUSD) you buy 1 XRP with 0.333 USD.

buy USD using XRP, (USDXRP) you buy 1 USD with 3 XRP.

 

buy BTC using USD (BTCUSD) you buy 1 BTC with 4000 USD.

buy USD using BTC (USDBTC) you buy 1 USD with 0.00025 BTC

Base currency always 1, counter currency amount changes.

Have you ever used a trading platform?

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2 hours ago, P3T3RIS said:

@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

Show me with balance sheets when the net flow is USD -> MXN. This is how I see it (let the FX rate be 1:1:1 for simplicity):

image.thumb.png.d7fc4610e68717684e7eebf0a31909eb.png

 

1) Customer's bank deposits are committed to the xRapid tx:image.thumb.png.81c3c8e13eace731c188942291c49928.png

 

2) The bank's reserves are committed, as are the XRP at the exchange:

image.thumb.png.210c65a30e7c1716fb1e3e2060c31343.png

 

3) The Bank's XRP goes back into the tx (committed now to the exchange in MX) and the MX Exchange commits their peso reserves to the tx:

image.thumb.png.6566932db5f0892133fd562423fa8755.png

 

4) Next the Peso reserves are recommitted to from the US Bank to the MX Bank, and the MX Bank commits to a liability of 10 deposits for the receiving customer:

 

image.thumb.png.8a0be7190195ec4c7eb42439189cbecc.png

 

5) As everything fits, holds are released and the tx settles:  

 

image.thumb.png.84d9f9d0d92fe7285f96282def4cee80.png

What's changed?

> A net flow from the US Bank to the Exchange (USD_Reserves) [LOLR US CB]

>> A net flow from the US Exchange to the MX Exchange (XRP) [no LOLR]

>>> A net flow from the MX Exchange to the MX Bank (MXN_Reserves) [LOLR MX CB]

 

In order for the system to persist through time, each of these parties need to either balance the flow (send an equal amount in the exact opposite direction), or lend the exact same balances back to their holders for the corridor the remain open. 

 

image.thumb.png.688cc89c25b891026dff65c66dd867ba.png

 

 

image.thumb.png.4f3a8ae125d9daef9a194ddfb6a69d11.png

 

Many Edits: apologies, there were some typos/errors [there is an "MXN_Reserves, Bank" missing from MX CB balance sheet in the final two pictures, please just imagine its there :) ]

 

Edited by Wandering_Dog

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