Big Banks Announce Fiat-Pegged ‘XRP Killer’ Crypto For Settlements

[miongski]

Can they create like super speed XRP or they are just dreamin'?
https://thebitcoinnews.com/big-banks-announce-fiat-pegged-xrp-killer-crypto-for-settlements/

[Phintech]

This seems to be the primary use case for XRPChat these days.  Low barrier to entry and poor oversight.

[KarmaCoverage]

This has been discussed before, about other "stable coins". The only detail in that article says that the service works by depositing Yen at the Japanese Central Bank,  and then the service would issue that value as new USD. No idea how the exchange rate fluctuations are handled?

Idk, I sort of expect the incumbents to stand up a few crypto projects, but usually they are late to the game, and by building something to protect their existing business model they often miss the essence of the new technology.

Also, with an open network vs a closed network... open wins

[automatic]

Interesting, this certainly sounds like a copycat effort in more ways than just one.  Reading between the lines, my guess is that this is UBS trying to use blockchain to bypass the existing correspondent banking network and possibly position itself as the correspondent player of the future.  I say this because:

• UBS is a founding partner:  https://bitcoinist.com/clearmatics-technologies-ubs-announce-blockchain-based-utility-settlement-coin/
• "Fnality intends to have further discussion with representatives from central banks about setting up USB accounts." <-- misspelled;  UBS?
• Solution seems to initially target FX majors which should already be highly efficient;  there should be little incentive to do this unless you are a large player who wanted a bigger slice of the pie:  "The system will initially work with U.S. dollars, euros, pounds, yen and Canadian dollars. Fnality plans to step up negotiations with central banks and aims to issue the first USC by late 2020."  (src:  https://asia.nikkei.com/Business/Banking-Finance/Global-banks-mint-digital-coin-for-fast-cross-border-transfers)

Additional observations:

• Much of this still sounds like vaporware.   Details are lacking, and there is a whole bunch of "system will do this and will do that" rather than "the system does this", which strongly suggests startup marketing and/or forward-selling.
• Whereas Ripple leverages the market for liquidity, this solution appears to leverage central banks (?) for liquidity.  What I think that these guys are trying to do is create a wrapper around the existing infrastructure and money flows, and then use a distributed ledger as an agreed-upon method of reconciling already existing CB-CB traffic (FX exchange, possibly foreign currency reserves?) which then "eliminates" counterparty risk.

On the surface this sounds like a fresh way to revitalize existing infrastructure - assuming it sticks, that is. 

Is this competition to Ripple?  Not at the moment in my opinion, but we should reevaluate in 24 months as I suspect the landscape will look much different then than it does now.

[itcdominic]

I've often said the team @Ripple have a closing window to strike while the iron is hot. There comes a point in time that NDA's to keep things quiet actually works against you.  Marketing TEAMs are paid millions of dollars to get the word out to command and control the market share. So why continue to allow NDA's to be written to hide success?  When will announcements be forthcoming to put Ripple in the driver seat? Media announcements are slow and weak.  https://ripple.com/press-center/ 

Ripple can and should be continuing to build the ECO system and win clients and as that happens they can conceal the activity until it finally explodes into mainstream and BOOM mass adoption,  or start letting the cat out of the bag and show the world that the new kid in town is going to win. 

[MrSensible]

 

[Finesse]

i love how bitcoinnews thinks it would just be a xrp killer if it blows up.

Like they think their precious btc and other cryptos wouldn't be done as well.

Nothing to worry about tho imo

[ZerpTidalWave]

On 6/3/2019 at 11:35 AM, Phintech said:

This seems to be the primary use case for XRPChat these days.  Low barrier to entry and poor oversight.

I know right...almost like “clickbait”