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JannaOneTrick

Will FedNow settle using XRP?

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Of course it's going to settle to US dollars, the question should have been asked more like "What will be used in the middle to facilitate the quick exchange and settlement into US Dollars for International transactions?" The devil is in the detail I'm not saying it's going to be XRP hope so but that question the way it was formed and delivered and the answer gives no insight into how this will work.

Edited by RikkiTikki

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It's almost certainly a Ripple-led system, designed to interoperate with remittances and digital assets, but there would be no need to use XRP internally within the US. If you want to transfer from a chase account to a BoA account, both of those banks have balances at the Fed so the Fed can be the middleman in that transfer.

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6 minutes ago, ADingoAteMyXRP said:

It's almost certainly a Ripple-led system, designed to interoperate with remittances and digital assets, but there would be no need to use XRP internally within the US. If you want to transfer from a chase account to a BoA account, both of those banks have balances at the Fed so the Fed can be the middleman in that transfer.

Right I was thinking in terms if there will be any international interaction in play here but as far as inter border transactions your right no need for XRP there.

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22 minutes ago, ADingoAteMyXRP said:

It's almost certainly a Ripple-led system, designed to interoperate with remittances and digital assets, but there would be no need to use XRP internally within the US. If you want to transfer from a chase account to a BoA account, both of those banks have balances at the Fed so the Fed can be the middleman in that transfer.

Agreed. I think XRP layer will come after the fact - but all sounds like a Ripple based system.

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16 minutes ago, Tinyaccount said:

I’m unsure about this... do you know of any indications that is the case?

No direct confirmation, but in May of this year Ripple was given one of 3 at-large-member positions on the Faster Payments Council (https://www.paymentsjournal.com/u-s-faster-payments-council-elected-board/), shortly before the FedNow announcement. There's no guarantee they're using the ledger, but Ripple seems to be offering guidance, and FedNow is also supposed to interoperate with blockchain and remittances. (Can't find that article now, but it was a business journal and not a crypto blog).

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43 minutes ago, ADingoAteMyXRP said:

It's almost certainly a Ripple-led system, designed to interoperate with remittances and digital assets, but there would be no need to use XRP internally within the US

I think everyone is thinking in the short term. There is no need to use XRP right now. If you are redesigning a legacy system that is going to be used by later generations, you have to be a little more forward thinking than what is present at face value. Scenario in the future - I tokenize my house, but I want to leverage the equity for home improvements or a personal loan. How am I going to trade that token to represent real USD? Or maybe I don't like USD and I want Euros or Yen. We know tokenization is real and there is a big push for that right now.

Yes, XRP is not being used right now, but the USD/fiat has limitations as to what it can do now AND in the future. I believe everything is going to be tokenized or digitalized in the future. The real question is, "how is that value going to be transferred in the future?" 

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12 minutes ago, ObeyTheWafflehouse said:

I think everyone is thinking in the short term. There is no need to use XRP right now. If you are redesigning a legacy system that is going to be used by later generations, you have to be a little more forward thinking than what is present at face value. Scenario in the future - I tokenize my house, but I want to leverage the equity for home improvements or a personal loan. How am I going to trade that token to represent real USD? Or maybe I don't like USD and I want Euros or Yen. We know tokenization is real and there is a big push for that right now.

Yes, XRP is not being used right now, but the USD/fiat has limitations as to what it can do now AND in the future. I believe everything is going to be tokenized or digitalized in the future. The real question is, "how is that value going to be transferred in the future?" 

Totally agreed. 

The thing about any RTP scheme that settles in central bank funds, is that those funds are effectively playing the same role as a nostro account in global remittance. They’re held funds that can’t be invested because they’re trapped by a central entity.  This allows instant payment at the expense of efficiency.

In the long term, it’s inevitable that these entities will use digital assets as a bridge and allow market makers to compete for those payment paths. I think the Fed knows this and is (hopefully) trying to future proof their solution so that it can accommodate that future state. So no XRP yet, but their planning bodes well for DA holders.

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I think that there might be a role for XRP or some other DA in intra-country payments.  

Not because the existing is a fail but rather because of micropayments.  Micropayments create opportunities that existing payment systems do not allow.  There will be a whole new sector of the economy created by those opportunities in my opinion.

If that is true then there IS a role for XRP or some other asset in the faster payments regime.

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