Chat: Global liquidity

[Benchmark]

Hi Bob, I've seen this topic in the suggested chapters list and thought it's a good topic to discuss because instant global liquidity is often mentioned by Ripple in media events. 

Quote

 

https://ripple.com/insights/liquidity-explained/

The Financial Times defines liquidity within a transaction as how easy it is to perform an exchange in a particular security or instrument, or the ease of converting an instrument into cash for withdrawal. This takes into account the stability and price of each instrument over the course of a transaction.

If a financial transaction is an engine with moving parts and multiple factors that impact its performance, then liquidity is the oil that makes it move. Good, clean oil in the form of cheap and readily available liquidity means less risk and a faster, smoother transaction.

 

 

Quote

 

https://www.linkedin.com/pulse/case-against-bankcoin-brad-garlinghouse

Brad Garlinghouse: Compared head to head with other independent digital assets (like bitcoin or ether), XRP settles the most efficiently cross-border, in just seconds. In fact, we’ve run tests with global banks to prove XRP can lower liquidity costs for cross-border trades. More to come on that front.

 

 

Quote

 

https://globalcoinreport.com/many-banks-start-using-ripple-xrp-liquidity-solution-2018-ends-garlinghouse/

In the interview held by CNBC, Garlinghouse established that by the end of the year the company expects major banks to adopt and start making use of their product xRapid, a liquidity solution that integrates the XRP token. The same way, by the end of 2019 he counts with at least a dozen of banks using the token ecosystem and liquidity.

 

 

Quote

 

https://cointelegraph.com/news/ripple-ceo-talks-liquidity-and-regulation-ultimately-governments-arent-going-away

Brad: What you’ve seen time and time again, when I say time and time again I’m talking about all markets, not just crypto and Blockchain, [is the idea of solving a real problem]. If you are able to solve a real problem for real customers [then you’re valued]. Especially if it’s a very, very big problem.

For Ripple, that global liquidity problem is measured in the trillions of dollars, I think that people are realizing that Ripple is gaining traction, we’re gaining engagement, we’re gaining more customers. So there’s been interest in that.

 

The subject of global liquidity could be a part of explaining the future of money. Because we've seen liquidity crises repeatedly throughout modern history and it could be interesting to explore how a highly liquid global bridge currency like XRP could mitigate those crises and to what extent. Apart from that, it's worth exploring how the cost of liquidity plays a role in the current Swift-based system. 

[metriculate]

I was listening to a video by cryptocurrency news. He was taking, as always, a very contrarian view of Ripple's and XRP's potential. He indicated there was no point for the more liquid corridors, to use xrapid/xrp. The addition of a bridge currency, would make extra steps and fees. He talked about the market makers and takers in the fx market, would gladly exchange euro to usd and vice versa.

[stuartXRP]

something to add :

Money 20/20 24 Oct 2018

 

“10 years out on the financial crisis we still don’t have the infrastructure perhaps to prevent the next one” says Chris Larsen, Executive Chairman & Co-Founder, Ripple, continuing “an efficient digital asset can really solve some of the key problems in global liquidity”.

 

 

 

Edited March 13, 2019 by stuartXRP

[Benchmark]

16 hours ago, metriculate said:

I was listening to a video by cryptocurrency news. He was taking, as always, a very contrarian view of Ripple's and XRP's potential. He indicated there was no point for the more liquid corridors, to use xrapid/xrp. The addition of a bridge currency, would make extra steps and fees. He talked about the market makers and takers in the fx market, would gladly exchange euro to usd and vice versa.

While it would certainly depend on the corridor, I do not believe the current system can offer lower fees, better speed and security than the XRP ledger.

Euro to US dollar is probably a highly competitive corridor already.