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CryptoGerrie

Coinbase - Xrapid - Moving money

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Brian Armstrong did an AMA a couple of days ago:

https://cointelegraph.com/news/coinbase-ceo-names-three-things-crypto-needs-for-mass-adoption

Quote

Answering another question, the entrepreneur (Bran Armstrong) said he loves Bitcoin (BTC) and wants it to succeed. However, he regrets being too involved in promoting BTC at some point in 2013-2014, thinking that the coin could become a scalable payment network for everyone. “I totally underestimated how controversial this idea might become in BTC community,” he confessed.

As some accused him of adding the value to the coin, Armstrong finally changed his mind to being agnostic to all of the coins and crypto protocols and support them all. Coinbase decided to support everyone instead of picking the winners, he said.

No reason not to explore xRapid integration. Guess we will see in the coming months.

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1 hour ago, mandelbaum said:

Brian Armstrong did an AMA a couple of days ago:

https://cointelegraph.com/news/coinbase-ceo-names-three-things-crypto-needs-for-mass-adoption

No reason not to explore xRapid integration. Guess we will see in the coming months.

He says this now because:

1. Binance is kicking Coinbase's ass.

2. He greatly underestimated other digital assets and tokens. 

In his severely warped utopian world only BTC, ETH, and a few ERC-20 tokes were legitimate.

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13 hours ago, CryptoGerrie said:

Hi,

Just to start of this treat and to be sure, my intentions are not to hype anything, but on Twitter, there have been some (strange) rumors which I like to have your opinion/ feedback about.

Basically started by a Director at Deloitte putting a message on Linkedin saying CB is using Xrapid. This can be right or wrong, but it does make sense to me if you think a bit for a while. For me a person in this role, together with the use of other termilogy knows excatly what he talking about and wouldn't make such a "mistake".

 

1059562116_ScreenShot2019-04-06at16_37_24.png.048f09316e8df4400c12cea70ffeabe2.png

 

Coinbase:

For me Coinbase, I never liked Coinbase, not for the fact that they didn't listed XRP.  But mainly because they don't live up to their mission "Helping the unbanked around the world". So if your ambitions are indeed to do that, why are you not creating onramps in countries much needed? Zero support in Africa,  zero support in Asia (besides Singapore). https://www.coinbase.com/global

Basically, you need a credit card (and most likely a bank that supports that) in order to trade on the platform. At the same time, Brian and his team are making this tear-dropping ******** films, saying they are "helping" the world to move money. That must be a problem...

The business model of Exchanges:

The current model is pretty simple. Get as many users, volume and trades on your platform.  Users x Trade = Income. But to do so, you need onramps. So why doesn't coinbase opens more onramps in other countries then? I think the most simple explanation is that you actually need a bank to support that. Here it becomes interesting. The reason and most likely the challenge for both a bank as well as for an Exchange is to have that relationship. Cause as soon as a bank get's involved with an exchange, they have issues with KYC  and other money laundry challenges. The most easy fix is by using a tether coin and such basically getting around that bank relationship. Local banks, would not easily contract a US based company Coinbase, as this will cost them loads of resources. So instead you see smaller (local) exchanges, popping up for example coins.ph and others. Long term this is a risk for Coinbase....

So how does Ripple tie in here?

Assuming I am right, the mission from CB is still to get global coverage. In order to get that, they might think about partnering with others. Ripple has an extensive network, consortium if you wish, with banks. All utilizing the same network *(Ripplenet). This network assures that money can be moved utilizing crypto (Xrapid) or Fiat (via Xcurrent). Creating a potential very interesting onramp for Coinbase. As Coinbase would most likely still won't establish a direct relationship with any bank overseas, they could be implementing something smarter. So they are kind of encouraging people to send money overseas and so creating a competitors for companies like WU. Without a clear USD pair in overseas markets, money still needs to move to other exchanges in the offramps for consumers to have acces to there money.

Now back to Xrapid. So I actually wouldn't be surprised if indeed Xrapid is being used. Basically for the USDC-XRP pair. USDC as (pegged to USD) stable coin, ensuring the USD value on the balances for CB and by using XRP as main settlement coin. However for this to work, this would mean that Coinbase if making contracts with overseas Exchanges. CB could benefit from possible "new" customers as when they enter with crypto, they don't need to create a Fiat on ramp directly in those markets and don't need local banking licenses and or contracts. So CB is building a partner network, with Ripple utilizing Xrapid.

All ********? Who knows.  But imo it does make sense. Some would say Ripple Bribe their way into CB. My opinion, CB will actually benefit from a close colloboration, but was hessistant because of the bitcoin core members, the pontential dust around the SEC and the lack of enough liquidity of XRP in the high potential markets which CB would love to reach. 

The common goal is clear,  a true system to help the unbanked by sending money realtime and cheap.

Love to hear your guys ideas.

 

 

Can you provide a link to that article please?

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Posted (edited)
6 hours ago, zerpdigger said:

Do you really need to quote the ENTIRE article to ask that?! :P:D

Someone has to feed the trolls :D I'd hate for them to experience a crisis of purpose.

Edited by slinuxuzer

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