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Ripple: Swift’s real-time payments don’t solve US$10tn liquidity problem


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23 minutes ago, Nihilist said:

I like the fact that Ripple has linked the article on their Twitter which has this sentence:

"The fact that Ripple is even present at Sibos this year might be a further indication that the Ripple-Swift relationship is warming up."

 

Ripple has been present at Sibos/Swift events for years. Cool your jets.

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1 hour ago, Nihilist said:

I like the fact that Ripple has linked the article on their Twitter which has this sentence:

"The fact that Ripple is even present at Sibos this year might be a further indication that the Ripple-Swift relationship is warming up."

 

Exactly how is Ripple solving the liquidity problem ?

Are they not having problems creating corridors with sufficient liquidity.

Is this not one of the main problems with xrapid ?

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2 minutes ago, Freaky said:

Exactly how is Ripple solving the liquidity problem ?

Are they not having problems creating corridors with sufficient liquidity.

Is this not one of the main problems with xrapid ?

Sigh... XRapid is live for just one year and you want instant liquid corridors connected to all exchanges and Fiat pairs around the world... Start a company and change the world in the second week right?

You often describe yourself as a realist in between all the hopium bringers... I think you give yourself to much credit and you're on the extreme other side of the spectrum. This is not being a realist, this is just a plain old pessimist ******* on everything thats work in progress. But thats for some the easiest way of coping with things I guess.

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7 minutes ago, Caracappa said:

Sigh... XRapid is live for just one year and you want instant liquid corridors connected to all exchanges and Fiat pairs around the world... Start a company and change the world in the second week right?

You often describe yourself as a realist in between all the hopium bringers... I think you give yourself to much credit and you're on the extreme other side of the spectrum. This is not being a realist, this is just a plain old pessimist ******* on everything thats work in progress. But thats for some the easiest way of coping with things I guess.

Keep your emotions out of this please, what I am or am not is of no concern to you.

There is a good discussion on this topic of liquidity and corridors in this thread

I am just trying to understand how this will all work at a lower level of detail, all the babble in press releases is just that. Pie in the sky stuff.

 

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1 minute ago, Honeybee said:

Question.  What if Swift suddenly partners with XLM to solve their settlement problem?  The enemy of my enemy is my friend.

Must admit I had not thought of that !

If something like that was announced I'd probably laugh myself senseless.

 

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57 minutes ago, Freaky said:

Must admit I had not thought of that !

If something like that was announced I'd probably laugh myself senseless.

You seem to forget what liquidity actually means.

It's a sheer pool of orders waiting on markets around the world and backed by real money, nothing like BitMex "entertainment" nonsense. Where can you see XLM trading at any significant volumes? Almost nowhere.

The market also has to be organic. Some simple distribution of 90B XLM to SWIFT users will not work. There must be real holders who paid real money for their tokens, otherwise it's not a market and the entire structure does not hold.

So calm down Freaky. XLM liquidity is about 2 grades lower than on XRP markets.

Ripple is doing it very well. :smoke:

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1 minute ago, Elysium2030 said:

I don't really understand the problem with Nostro/Vostro accounts.

Ok...  here’s one problem with Nostro/Vostro.  This has happened to me.  I go to use a International transfer service as I’ve done previously but they tell me that they can’t do it till Monday or Tuesday because they ‘have run out of liquidity’.  In other words their Nostro account is dry.

Another problem is that particular company has to put large amounts of funds into a number of overseas places just on the hope that customers will come along and want to use it.  At times they overestimate or underestimate the future demand.  That results in either opportunity cost for those funds over there sitting idle,  or upset customers who wanted to transfer but can’t.  They also run foreign exchange volatility risk while the funds sit there.

Fact is that having to prefund different accounts in different countries is a major problem. 

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10 minutes ago, Elysium2030 said:

I don't really understand the problem with Nostro/Vostro accounts.

Because even with XRP, somebody (the exchanges) has to hold the currency they want to exchange into.
MXN, for example, doesn't come out of nowhere, somebody has to hold it first.

It's the traders who hold both XRP and MXN, sellers and buyers, people like you and me. The multitude of it creates deep pools of liquidity. That's why it takes some time...

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3 minutes ago, Tinyaccount said:

Another problem is that particular company has to put large amounts of funds into a number of overseas places just on the hope that customers will come along and want to use it.  At times they overestimate or underestimate the future demand.  That results in either opportunity cost for those funds over there sitting idle,  or upset customers who wanted to transfer but can’t.  They also run foreign exchange volatility risk while the funds sit there.

Okay, that makes sense.

that means instead of holding EUR, USD, MXN, KRW all over the world, USD are simply held and if a customer needs KRW in Korea, they are just instantly sent over via USD-XRP XRP-KRW

Sounds reasonable on paper, but if this is to happen on a global level, it really needs much more liquidity and I really wonder who in exotic countries should please buy XRP with their exotic currency?

Burundi is not Switzerland

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11 minutes ago, Elysium2030 said:

I really wonder who in exotic countries should please buy XRP with their exotic currency?

David and others at Ripple have said that on multiple occasions they have expected to have to pay market makers to provide liquidity but people discover the demand and supply it for their own profit via arbitrage worldwide.

Its certainly not a simple thing and can’t grow instantly,  but it’s kind of a build it and they will come kind of thing.  Fudsters will point out how slow the growth is,  but it is not a trivial undertaking what’s happening here...  it will take time but will also start to speed up as network effects kick in.

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4 hours ago, Nihilist said:

I like the fact that Ripple has linked the article on their Twitter which has this sentence:

"The fact that Ripple is even present at Sibos this year might be a further indication that the Ripple-Swift relationship is warming up."

 

Based on a number of comments I've seen I'm coming round to thinking that Ripple could be working or planning on working with SWIFT.

SWIFT has the network and reach, Ripple solves the liquidity issue. Would make perfect sense. Maybe Ripple has realised it will struggle to get existing SWIFT users to move to Ripplenet and has changed its focus. Their talking more about their liquidity solution now.

https://www.gtreview.com/news/fintech/ripple-we-are-not-replacing-swift/

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