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Mcripple

One thing I THINK I am starting to grasp

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Posted (edited)

I’ve been waiting for Bank if America or some other Internationally known Bank to announce they are using xrapid and holding XRP

Thats not going to happen, right?

D schwartz explained on Twitter this morning that banks are highly unlikely to hold an uninsured digital asset like crypto - at least for the time being. However they are likely to do business with a third party who will take the risk and hold XRP to be the liaison between transferee and transferer. 

I think this is an important point for people like me to understand.

So that’s why most of the xrapid users I’m aware of thus far are financial firms I am not familiar with and don’t seem like traditional banks.

Am i on the right track?

Edited by Mcripple

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Posted (edited)

Hi McRipple, I am fairly new to XRP hence the positivity :-) from what I have found over the last few months, The smaller fi’s are building the liquidity the larger banks need, the FX market itself is huge and has the potential to grow as  Xrapid allows the world to send smaller payments with less cost. Seems to be part of a master plan and this may only be the end of stage 1 (crawl, walk, run).

Edited by Padster

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3 minutes ago, Roaring_Twenties said:

Thanks @GrayFox,

I learned a lot in your reply about where you think we are in terms adoption. Your thoughts above are what I was actually looking to learn with my post on adoption yesterday. Great to read on the IMF and on adoption in Africa.

Here's one of the many videos on the IMF page on youtube if you haven't seen this one yet. The moderator is Lagarde herself. One of the panellist is the governor of the central bank of Kenya. The panellists cover huge geographical areas including emerging markets and developing nations. You can hint at what the IMF is looking to do.
 

 

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7 hours ago, Mcripple said:

I’ve been waiting for Bank if America or some other Internationally known Bank to announce they are using xrapid and holding XRP

Thats not going to happen, right?

D schwartz explained on Twitter this morning that banks are highly unlikely to hold an uninsured digital asset like crypto - at least for the time being. However they are likely to do business with a third party who will take the risk and hold XRP to be the liaison between transferee and transferer. 

I think this is an important point for people like me to understand.

So that’s why most of the xrapid users I’m aware of thus far are financial firms I am not familiar with and don’t seem like traditional banks.

Am i on the right track?

Yes and no.  

Large banks are often an amalgam of legal entities arranged in different types of ownership structures.   Certain legal entities may hold the actual banking license while other legal entities in the corporate structure solely perform marketing activities or back-office services.

I’ll try to keep this as high level as possible but from a legal standpoint, the legal entity that holds the banking license (I.e. the entity carrying out the actual banking activity) doesn’t need to hold XRP directly, but can still own and utilize it through a subsidiary, other affiliate, or third-party.

Here is an example:   McRipple Bank is a large US bank and is comprised of three separate legal entities - McRipple USA Inc., McRipple XRP LLC, and McRipple India Pvt. Ltd.   McRipple USA Inc. Is the legal entity within the structure that holds the banking license/charter, McRipple XRP LLC is a separate legal entity that exists solely to custody McRipple’s XRP assets, and McRipple India Pvt. Ltd provides customer support for McRipple Bank’s US based customers.

McRipple USA Inc can implement a service agreement with its non-regulated subsidiary McRipple XRP LLC whereby McRipple XRP LLC either holds McRipple USA’s XRP on its behalf, and/or assists McRipple USA Inc to facilitate international payments with the XRP it holds.  Structuring it this way may avoid any conflicts that could jeopardize the main banking entity’s license or charter.

In this example does the entity that is actually carrying out the banking activity itself directly hold the XRP?  No.   But they are holding it indirectly elsewhere in their corporate structure.

Hope this helps people understand a little bit about large banks and corporations structure their operations.

 

 

 

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Wow ! What an interesting Video thanks for posting Greyfox.  The statistics on Chinese adoption to date at the end, 1:03:21 is very impressive...20% of the populace use Crypto Wallets, 40% use Credit/Debit Cards, leaving 40% paying for Goods & Services with Fiat.  20% equates to 280 Million Crypto users, that's the Populations of Germany & Pakistan combined. I hope they take a liking to XRP. 

may the fourth be with you GIF by LEGO

 

 

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Posted (edited)
3 hours ago, 3GO3D said:

Wow ! What an interesting Video thanks for posting Greyfox.  The statistics on Chinese adoption to date at the end, 1:03:21 is very impressive...20% of the populace use Crypto Wallets, 40% use Credit/Debit Cards, leaving 40% paying for Goods & Services with Fiat.  20% equates to 280 Million Crypto users, that's the Populations of Germany & Pakistan combined. I hope they take a liking to XRP. 

may the fourth be with you GIF by LEGO

 

 

Yes the M-pesa example is a compelling example of how a currency like XRP might take off in developing nations.  It really is the BTC dream, but with regulatory clarity and institutional support and it can be integrated into the international banking system.  The currencies in these countries are not trusted and the banking infrastructure is very incomplete.  What these people want are mobile phones that connect with reliable banking facilities built to serve their small scale and low value transaction economies.  The market is wide open for colonisation by Ripple/Mojaloop which would give these people  a trading currency that crosses border, holds value and is simple to set up and use.

With regards to the big banks - Kahina Van Dyke put it well in her video when she said the correspondence banking paradigm is inefficient, but the big banks make money out of those inefficiencies.  Smaller banks do not benefit and have a much stronger reason to want technologies like Ripplenet to be adopted. Small banks will adopt faster than larger banks.  And as Treacher says new specialist FI companies will develop that will provide FX services that attract customers away and fragment monolith banks.

There are so many ways that Ripplenet will get adopted on the margins and strangle the centre

On the other end of the scale you have SBI/R3/Temenos driving change from the top down

Edited by Julian_Williams

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2 hours ago, Julian_Williams said:

With regards to the big banks - Kahina Van Dyke put it well in her video when she said the correspondence banking paradigm is inefficient, but the big banks make money out of those inefficiencies.  Smaller banks do not benefit and have a much stronger reason to want technologies like Ripplenet to be adopted. Small banks will adopt faster than larger banks.  

 

Exactly. Not many people understand this. Yet another reason why I'm confident in Ripple and XRP moving forward. I don't see any other solution that directly benefits smaller FIs.

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Posted (edited)
8 hours ago, Julian_Williams said:

great infographic from XRParcade: looked at this way Ripplenet are doing pretty well on getting known amongst the top 75 banks (32 out of 75 have tested or joined Ripplenet)

D5qnd9jX4AAFBZs.png:large

 

ING Group is sneaking in via R3 - Corda Settler (with XRP) :)

And don’t forget the SWIFT - R3 (hyperledger) pilot....... with Corda Settler (with XRP). Just connecting the dots AND the other 10.000 banks :big_boss:

https://todaysgazette.com/r3-partnership-heres-how-swift-and-ripples-xrp-are-already-linked/

Edited by cryptoxrp

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8 hours ago, Julian_Williams said:

great infographic from XRParcade: looked at this way Ripplenet are doing pretty well on getting known amongst the top 75 banks (32 out of 75 have tested or joined Ripplenet)

D5qnd9jX4AAFBZs.png:large

 

Two years ago, David Schwartz wrote:

Quote

 

) Ripple gets banks to use its payment technology.

2) Banks integrate Ripple's payment system into their system.

3) This helps to eliminate all the technical obstacles to banks routing payments through a crypto-currency. (Regulatory, compliance, business rules, integration effort, etcetera.)

[...]

build a massive, level playing field in which assets can compete to bridge payments, then try to make XRP a winner on that playing field.

 

Keep that in mind when looking at that list of banks that have integrated Ripple's payment system into their system. So far, the plan is working.

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Posted (edited)

@musclehog - yo!

In between sets check out this thread. It’s full of outstanding news and progress shining light on XRP’s bright future.

Is this bright future chiseled in stone? No. Only death, taxes and FUD are. It does however show what the forces of change are (institutions who find it in their best interest) and those that are against the forces of change because keeping the status quo is in their best interest.

I see the sunny side of life winning because the market will be the ultimate determining factor. Enjoy the thread!

Oh look 👀 no line at the squat rack...

Edited by Roaring_Twenties
Grammar...again

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