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The Payments Modernization Act (Level Playing Field?)

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Posted (edited)

It's still anyone's guess as to how this all plays out wrt Ripple and XRP. 

The fact that team Ripple has been working with the US govt in many capacities tends to lean towards a favorable outcome for those of us XRP speculators and for those who are just here for the tech.  It's unfortunate that they just don't come out and say simple clear things like:  Yes we are using Ripple software and XRP, or... we are using Ripple software but will never use XRP because of reasons X, Y and Z or...no we aren't using anything Ripple etc.  As it is today it's still connect the dots at your own risk.  I place my risk with my investment.  I think this all plays out well for anyone speculating on XRP.  I know there are those here that will snap at this but all this takes time.  The only thing I can offer to those who think it should go much faster, have at it.  Get er done.  The wheels of progress turn slowly unfortunately.  The good news from my perspective is I'm pretty sure the long part of the wait is behind us. 

The fact that we have The Payments Modernization Act of 2019 tells me we are closer to our destination than than we are to our starting point.

Edited by Roaring_Twenties

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Posted (edited)
5 minutes ago, Roaring_Twenties said:

I know there are those here that will snap a this but all this takes time.

David Schwartz said it best, time is all relative in this space.  If you were hoping to get rich overnight then you are in the deepest pits of despair right now.

If you understand that Ripple is attempting to replace a cracked foundation that was put in place over 40 years ago, you probably understand we are still a bit early.

Edited by Bettergoham

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Posted (edited)

Yeah - apparently the playing field is all "catty-wompus" and they're finally getting around to leveling it.  It'll be interesting to see the full, real description of what "level playing field" actually entails should they have it defined and prescribed.  The term has been used quite a bit by a wide number of people. 

Edited by Roaring_Twenties

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Posted (edited)
21 minutes ago, Roaring_Twenties said:

It'll be interesting to see the full, real description of what "level playing field" actually entails should they have it defined and prescribed

This has been my exact question, what do they mean?  I believe the following:

Level playing field on a domestic level entails large banks, small banks, and payments processors having the same ability to compete for business in the market place.

Level playing field on a global level still seems to be related to competition between banks but also tied into politics.  On this write up https://www.bis.org/speeches/sp180130.htm, you can see Augustin talks about not only similar risk should be similar regulation but also the idea that in the face of crisis these banks should not have the ability to run to their respective governments and ask for a hand out.  If U.S. banks fail due to poor risk management the fed shouldn't simply be able to print up more dollars to prop them up.  If Chinese businesses fail and the banks in turn do then the government shouldn't be able to print more dollars to prop them hurting other economies.

This is where the stretch and tin foil hat come into play, how do you do that?  Governments will always protect the large banks and businesses when given the power to do so or they would have a revolt on their hands from the people who are starving/broke.  Well maybe, just maybe if everyone shared a universal bridge asset of some sort where all eyes could see plain as day the value of different currencies then the different governments could not cheat one another.

Edited by Bettergoham
Fixed to shouldn't

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I agree that a lot of things point to a single way of transferring value across the globe eliminating advantages bigger institutions have over smaller ones. But that hardly seems something politicians would take notice of. Seems like it would take some thing bigger for all the level playing field talk. 

When it comes to level playing field the one thing I was looking for was: what does one country have in terms of either benefit or detriment that all others do not?

An obvious one is world reserve currency. Could level playing field have anything to do with no country’s fiat playing the role of the world’s reserve currency?

I know people will argue that the US would never give up it’s advantages of serving the role of world currency but any country that does appears to create imbalances.

https://en.m.wikipedia.org/wiki/Triffin_dilemma

Does making an asset that’s not any country’s fiat solve this imbalance issue and create a level playing field?

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19 minutes ago, Roaring_Twenties said:

I agree that a lot of things point to a single way of transferring value across the globe eliminating advantages bigger institutions have over smaller ones. But that hardly seems something politicians would take notice of. Seems like it would take some thing bigger for all the level playing field talk. 

When it comes to level playing field the one thing I was looking for was: what does one country have in terms of either benefit or detriment that all others do not?

An obvious one is world reserve currency. Could level playing field have anything to do with no country’s fiat playing the role of the world’s reserve currency?

I know people will argue that the US would never give up it’s advantages of serving the role of world currency but any country that does appears to create imbalances.

https://en.m.wikipedia.org/wiki/Triffin_dilemma

Does making an asset that’s not any country’s fiat solve this imbalance issue and create a level playing field?

Hard to imagine Trump would be mentioning "level playing field" like he has been if it meant that the USD would lose its reserve status

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Just now, Roaring_Twenties said:

When it comes to level playing field the one thing I was looking for was: what does one country have in terms of either benefit or detriment that all others do not?

An obvious one is world reserve currency. Could level playing field have anything to do with no country’s fiat playing the role of the world’s reserve currency?

The "wealthy" nations have fiat currencies that are strong relative to those of "poor" nations.

The "poor" nations have (most at least) large populations of people who are hungry for work/trade.

A friction-less system of allowing the transfer of value allows the movement of value (money and products/manpower/services) and this unlocks the potential of the latent value in the "poor" nations while letting the "wealthy" nations unlock greater benefits of the strong purchasing power of their money.

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Hence the statement:

“I know people will argue the US would never give up it’s advantages...etc.

But - what if there’s a new angle that benefits the US while solving another problem? My only point here is there’s people who can really figure out all the angles. I’m not saying that they are here on this chat but in places we don’t have access to.

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Just now, Roaring_Twenties said:

Hence the statement:

“I know people will argue the US would never give up it’s advantages...etc.

But - what if there’s a new angle that benefits the US while solving another problem? My only point here is there’s people who can really figure out all the angles. I’m not saying that they are here on this chat but in places we don’t have access to.

The control of a nation's money supply is an immense advantage. The existing global monetary system is sluggish and awkward due to flaws and limitations in its inherent design (technological limits back then). This translates to severe constraints in the ability of governments to leverage on the monetary system for greater benefits.

The natural order of human civilisation is towards expanding influence. The governments of "wealthy" nations seek to increase their influence over the others so as to maximise their own benefits while the latter are exploring ways to unlock the value that is trapped in their resources (people, raw materials, produce, etc). A new monetary system that leverages on technology allows these governments to fulfill their desires.

Just as water finds its level across two containers when they are connected, a new monetary system that allows quicker and less-constrained flows will help to establish an equilibrium across nations. Will there be parties that will lose their monopoly or advantages when such equilibrium happens? Inevitably. However, these entities have always been just tools and when this old set of tools are worn and have been made irrelevant, new tools will have already been found and become important cogs and gears of the new world. Out with the old even as the new are heralded and ushered into dominance.

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At the end of the day, the struggles and competition between nations, between multinational corporations, between people are simply illusionary. We are merely fighting for relative dominance and share of Earth's resources (including human beings' time, labour, intellect). The pie to be shared is the Earth's resources so no matter what we are doing today, our efforts go towards trying to increase our share of the pie. Perhaps in the near future we may be able to access the resources of other planets but that will only just mean the pie has gotten bigger while still not changing the essence of these struggles (fighting for a share of finite resources).

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Posted (edited)

One has to be very careful with the water metaphors, as "a rising tide lifts all boats" means one thing, but:

10 hours ago, Cobalt said:

Just as water finds its level across two containers when they are connected, a new monetary system that allows quicker and less-constrained flows will help to establish an equilibrium across nations.

That means something entirely different, depending upon who reads it and how it's translated into action.

This is the old "globalization" vs "modernization" stuff that I used to warn about;  it's the high-level friction.

There are always well-intentioned mal-contents who want to "equalize" things... by any means necessary...

That it's made clear that prosperity - not some subjective/naive notion of "equality" - is the goal is the key.

That is the single greatest point of friction.  Treat it cavalierly - or as a "disruptor" - and this goes... nowhere.

I believe Ripple's management understands this very, very clearly, but I'm not so sure that anyone else does.

 

 

And... also from that Money2020 Conference (no video available):

Chris: There is a tech backlash going on for sure, Silicon Valley has missed the boat on this.

Arjan: How so?

Chris: Well it’s this continuation of something that worked 15-20 years ago. “We’re going to change the world, move fast and break things, and this very cavalier, adolescent approach about don’t worry about the consequences, everything is going to be fine.

Arjan: Especially with global financial services?

Chris: Totally, this is where fintech struggled, if it was pure code it’s one thing, but if it’s fintech where it’s technology, capital, and compliance, it’s a totally different thing. But Silicon continues down this march and it is really hurting the efforts right. It’s going to be for now. But it’s embed in this conference, it’s embedded single industry, there’s no avoiding it. But people are scared, that they don’t want to hear, that they are going to break things, they are going the disrupt things. The technology, the Blockchain technology that we are talking about today is distruptive for sure, but the teams have to go out of their way to be non-disruptive. I like to use the analogy that if you’re going for open heart surgery, a fairly disruptive procedure, you don’t want the Doctor to be disruptive right. You want the Doctor to be caring for you, and you know to convey empathy, and to be thinking about what can go wrong, and do no harm first. So you can think, the technology is disruptive, the teams have to go out of their way to not be disruptive. It’s a fundamental shift in the way of thinking of Silicon Valley.

Edited by NightJanitor

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Just now, NightJanitor said:

One has to be very careful with the water metaphors, as "a rising tide lifts all boats" means one thing, but:

That means something entirely different, depending upon who reads it and how it's translated into action.

This is the old "globalization" vs "modernization" stuff that I used to warn about;  it's the high-level friction.

There are always well-intentioned mal-contents who want to "equalize" things... by any means necessary...

That it's made clear that prosperity - not some subjective/naive notion of "equality" - is the goal is the key.

That is the single greatest point of friction.  Treat it cavalierly - or as a "disruptor" - and this goes... nowhere.

I believe Ripple's management understands this very, very clearly, but I'm not so sure that anyone else does.

Anything that has utility value, a tool or system, mechanism or facility will be subject to a diverse range of influences with malice on one end and altruism on the other.

Are we able to build a Utopia out of the presently chaotic world that we live in? Perhaps. The physical universe tends towards chaos however and that applies to the ambitions of mankind as well. It will take a tremendous amount of concerted effort, both in planning and execution for a well-intentioned group that has sufficiently clout that extends across various aspects of our world - politics, economics, commercial, etc - to even make this a remote possibliity.

By prosperity, are you referring to material wealth? Or would that comprise more intangible aspects such as spiritual and emotional wealth?

If it is solely material prosperity that you are referring to, personally I believe it would be a gargantuan task to bring about global equality in this aspect. To rephrase it, we would ask this question: "Can every single person be in the world be materially rich?" and the answer to that hinges upon whether the resources of this world can be distributed equitably and fairly to all global citizens.

Looking at our present largely capitalist systems, wherein land (an example of resource) has either been carved up and is held privately by a relatively small group of individuals (a small percentage of land owners worldwide compared to the global population) or has been alloted to and are held by the governments, I do not think we will ever see in our lifetimes a Utopia in which the resources of the world can distributed equitably across all of mankind. 

As for whether Ripple's management understands the principles that you are referring to, I believe none of us are privy to that specific information and it is unlikely we will ever discover their true motivations. And suppose even if they have fully altruistic motives behind what they are doing, what is the likelihood that entities with far greater power and influence would allow the transformation of the core of the existing systems and jeopardise the comfortable advantageous circumstances that they enjoy?

I would suggest that the superficial layers are permitted to be changed to maintain the illusion of democracy but the underlying structures will always be carefully protected and preserved. For now, we ride the waves of these superficial changes.

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