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BruceWhale

Instant payments in Europe

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3 minutes ago, Tripple said:

Why would they use XRP for Euro-to-Euro transactions? Makes no sense. 

I'm not saying that they use the XRP for euro / euro transactions.

I strongly believe that they use the R3 network for payments internal to the euro area. How are they going to pay for foreign payments?

  R3 => Cross-border payments => XRP

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5 minutes ago, BruceWhale said:

I strongly believe that they use the R3 network for payments internal to the euro area.

They might use Corda Settler, if it's cheaper. I'd love to see what the spreads are like for these high liquidity corridors. 

The way I see it is that XRP will be used in corridors with low liquidity and high friction. 

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10 minutes ago, BruceWhale said:

I'm not saying that they use the XRP for euro / euro transactions.

I strongly believe that they use the R3 network for payments internal to the euro area. How are they going to pay for foreign payments?

  R3 => Cross-border payments => XRP

Why R3 for internal payments when there's a dedicated system for euro payments?

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4 minutes ago, xp3215233 said:

Why R3 for internal payments when there's a dedicated system for euro payments?

And in 6 months the time has gone from 48-72 hours to 10 seconds with fees divided by 5?

What is the point between this companies? They are partners with R3

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1 hour ago, LilBender said:

The Euro is not the only currency in Europe

Not even in the EU

The instant payments that the OP is referring is only applies within the SEPA zone - and they do cross-border transfers exclusively in Euros.

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12 minutes ago, Tripple said:

The instant payments that the OP is referring is only applies within the SEPA zone - and they do cross-border transfers exclusively in Euros.

There are non Euro currencies in the SEPA zone

 

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9 minutes ago, LilBender said:

There are non Euro currencies in the SEPA zone

  

Those two concepts aren't mutually exclusive. Cross-border transfers are still done in Euros within the SEPA zone.

Many countries have a floating domestic currency and still conduct cross-border transfers in a separate currency.

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Before

SEPA transfer from one bank to another (even in the same country in euros): 4 € fee - 48 to 72 hours to receive it (working days except weekends)

SEPA transfer from one bank to an other bank in an other country in euros 4€ fee - 48 to 72 hours to receive it (working days except weekends)

Now

SEPA transfer anywhere at any time ( working days and weekends and monday ) 0.80/1€ fee - 10 to 20 seconds to receive it

Strangely all the banks that now offer in Europe this last type of transfer are part of the R3 Consortium. It is not a coincidence.

From now on a transfer towards Kraken for example or a European exchange will be immediate, whereas previously it was necessary to count 3 to 5 days so that it arrives

Do banks want the same service for international transfers outside SEPA or in another currency? No problem, R3 Corda is a partner with Ripple and can use his network through  XRP to do the same thing internationally

Step by step

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@BruceWhale, I agree that they're upgrading the existing payments rails and from what you've provided it looks likely that R3 has some role in that process. I'm just saying that intra-European payments are unlikely to touch XRP because they're conducted on a Euro-Euro basis (regardless of wether a country has another domestic currency as @LilBender has alluded to). Outside the SEPA zone XRP could easily be used, especially in traditionally illiquid corridors. That's my understanding, I'm more than happy to be proven incorrect. 

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