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RikkiTikki

XRP could be theoretically used in domestic payment transfer via the US’ ACH system, says Uphold CEO

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Pretty concerning reply from Welly Scully. He may as well have said, 'That sounds like a lot of work, and it's your problem, not ours'. His reply also misses the point that ACH transfers from traditional banks are the friction point that Thieriot is looking to address - not transferring value from elsewhere in the XRP ecosystem. 

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Ive always thought this was the direction 
Catalyst was taking https://www.cutoday.info/Fresh-Today/Catalyst-Corporate-Ripple-Partner-To-Give-CUs-Access-To-Blockchain-Payments

Quote

Initial Plans

Catalyst Corporate said it will explore Ripple’s blockchain solution initially to overcome a number of challenges credit unions and their members face with international wires.

So, whats next i ask, domestic value?

Edited by Drew

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The amount of friction with ACH transfers is minimal IMHO.  Yes, there is optimization that can be made there, but markets such as Japan offer a much more significant area to try and improve domestic payments using a blockchain-based payments network.  Of course if XRP can measurably save banks / FI / credit unions money and affect their bottom line profits they'll eventually implement solutions at all layers international and domestic.  It just might take a decade or more for some of those layers to be looked at closely for an overhaul.

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3 minutes ago, PG1 said:

They remain 'laser focused on cross-border payments'.  Don't spread the peanut butter too thin.  And probably something about cash on a plane...

They will most likely try to get someone else to work on this. But it sounds like a good use case

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Look at what Japan is doing domestically with Ripple's tech. Also, I'd think the central bank which acts as a an inter-bank clearinghouse within a domestic economy could just run their own Rippled ledger, and call the XRP "fiat CBDC" and there you go.

No need to actually use XRP from the XRPLedger in a domestic settlement situation IMHO. Why introduce the exchange rate risk? Just doing everything in fiat is easier.

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8 minutes ago, KarmaCoverage said:

Look at what Japan is doing domestically with Ripple's tech. Also, I'd think the central bank which acts as a an inter-bank clearinghouse within a domestic economy could just run their own Rippled ledger, and call the XRP "fiat CBDC" and there you go.

No need to actually use XRP from the XRPLedger in a domestic settlement situation IMHO. Why introduce the exchange rate risk? Just doing everything in fiat is easier.

I think they are more less speaking to the instant settlements of ACH which in most cases in the States is not instantaneous.  I don't think exchange rate even comes into play here as I am sure with this scenario there would be no going through exchanges to utilize XRP.  Again at this appears to be an exploration of possibilities but it's not far fetched as the big point of XRP is instant settlement why can that not be applied to domestic rails also?

 

Edited by RikkiTikki

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I think ACH is run by the Fed, also Fedwire is for US domestic inter-bank settlement.

It seems like all the central banks over the past 5 years hacmve run tests and some have implemented Real Time Gros Settlement (RTGS) systems. I'm not sure what the US Fed has been working on in this regard?

Fyi, Greg Kidd was both an early guy in Ripple from the st. Louis Fed, and is an investor or something with Uphold. 

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3 minutes ago, KarmaCoverage said:

It seems like all the central banks over the past 5 years hacmve run tests and some have implemented Real Time Gros Settlement (RTGS) systems. I'm not sure what the US Fed has been working on in this regard?

The Faster Payments Task Force asked for comments on whether or not the Federal Reserve should develop an RTGS system and also if it should develop a liquidity management tool either themselves or with help from the private sector.

If you read through the comments made, most large banks seem to agree that the The Clearing House's RTP system is the future domestically and that the Federal Reserve should not intervene at this point because it would only hinder adoption of this RTGS system that has been in the works for several years.

Domestically, it appears that the RTP system will continue to gain traction and that it should be widely adopted in the U.S. by 2020.

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48 minutes ago, KarmaCoverage said:

Look at what Japan is doing domestically with Ripple's tech. Also, I'd think the central bank which acts as a an inter-bank clearinghouse within a domestic economy could just run their own Rippled ledger, and call the XRP "fiat CBDC" and there you go.

No need to actually use XRP from the XRPLedger in a domestic settlement situation IMHO. Why introduce the exchange rate risk? Just doing everything in fiat is easier.

Technical Question:  Using the XRP template, which is the fastest , cheapest and cheapest DA.  Would it be possible for the Japanese government to commission Ripple to mint a Japanese yen version of XRP for yen only transactions, a US dollar version of XRP for US transactions, a Euro Version of XRP for EU transactions?

Edited by Julian_Williams

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2 minutes ago, Julian_Williams said:

Technical Question:  Using the XRP template, which is the fastest , cheapest and cheapest DA.  Would it be possible for the Japanese government to commission Ripple to mint a Japanese yen version of XRP for yen only transactions, a US dollar version of XRP go US transactions, a Euro Version of XRP for EU transactions?

Yeah, I think what Japan has done is stand up a private/permissioned ledger amongst 50 or so Japanese banks. Not sure if this is live, or in test mode still?

There should be a thread or two on what Japan has been doing with Ripple over the past few years.

I'm not sure I ever saw a technical description of how they are doing, what they are doing.

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12 hours ago, Kpuff said:

 

They will most likely try to get someone else to work on this. But it sounds like a good use case

*cough* xSpring *cough*
*cough* Ripple Incentive Program *cough*

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