David Schwartz XRP Ledger Stablecoin Prop

[KarlHungus 319]

 

[EXARRPEE 39]

So I never have to sell my XRP. I can just collatealize my XRP, issue a stable coin to myself, buy assets that generate income, then increase my position in XRP.

I'm not HODLing. I'm NEVER SELLING.

"Look at me. Look at me. I am the captain/bank now"

[peanut56 922]

     I think I need to watch that again or maybe five more times. Is my understanding correct that the proposal is to utilize xrp as collateral to the value of a stable coin to create a capability to utilize the xrp ledger for transactions of the stablecoins?

Also I would assume that this would be utilized in areas where xrp is not legal or accepted, but a stable coin would be ok?

 

It also sounds like a creation of independent market makers using  xrp as collateral to use stable coins within a specific area?

A lot of information I've watched it twice and need to go over it again. You know I'm slow.

 

[invest2lose 1,826]

so, is this good for xrp?

[KarlHungus 319]

23 minutes ago, invest2lose said:

so, is this good for xrp?

Overall it seems good for xrp.  Any demand for the xrp-backed stable coins creates demand for xrp since they’re the collateral.  It creates a way to digitize other assets and use the speed and efficiency of the ledger, consequently moving more value to xrp....I think I have that right.

[KarlHungus 319]

33 minutes ago, peanut56 said:

     I think I need to watch that again or maybe five more times. Is my understanding correct that the proposal is to utilize xrp as collateral to the value of a stable coin to create a capability to utilize the xrp ledger for transactions of the stablecoins?

Also I would assume that this would be utilized in areas where xrp is not legal or accepted, but a stable coin would be ok?

 

It also sounds like a creation of independent market makers using  xrp as collateral to use stable coins within a specific area?

A lot of information I've watched it twice and need to go over it again. You know I'm slow.

 

Sounds right...it took two viewings for me to feel comfortable with it.

[jag216 1,551]

If this gets implemented, this is absolutely history making, for reasons I stated in my comment on the video itself.

tl;dr - if XRPL puts this is motion, the price of XRP is no longer a concern to me - the power of XRP on the global stage takes over.

The only question is my mind is: who will be the first nation to put their own national stablecoin on the ledger and collateralize it with their natural resources.

The very idea that asset holders effectively control the money supply by collateralizing or redeeming collateral against the coins - this is monumental. This technology makes the quantum leap from debt-based financing of the monetary supply to asset-backed currency but does it in a decentralized way where the incentives potentially keep the engine afloat - so long as there is a reliable price feed available that is not misrepresenting prices or is otherwise a bad actor.

It puts a lot of power in the hands of the price indexes, but with the transparency of the ledger we'll be in a unique position to determine whether the price feeds are properly calibrated or not.

The idea that the absence of a price feed prevents redemption and buying of collateral positions but places no restrictions in the transaction layer of the stablecoin itself is another stroke of genius - instability in underlying asset prices freeze the volume of money but allows the existing stablecoins to flow freely - this is a tremendous innovation in comparison to traditional gold-back currencies or other asset-backed basket currencies.

Previously, it was possible for asset holders to pull their assets and effectively kill the money supply in a panic state, but by placing the price volatility sensor at the feed level, you can lock down the underlying value of the money while allowing the money at the consumer level to continue to function.

I watched the video on my way to work and just slide after silde this presentation blew my mind in terms of the convention asset-backed currency problems it solves. I'm sure there will be new problems that it raises, but my hat falls to the ground to the JK if they are able to implement this on the ledger as he describes. It will allow responsible countries to soar - SOAR - into the new level playing field economy and there will be a flight to quality by other countries that will move so fast that our collective heads will spin.

I look to the countries with the most natural resources and reserves and lowest debt to GDP - and it seems crystal clear to me who the likely candidates are to establish their stablecoin nationalized currency on such a system as DS suggests:

• Estonia
• Russia
• Saudi Arabia
• Hong Kong
• India

I have said before in chats and on telegram that very soon the first tier digital asset layer will be entire inaccessible to the common retail investor, and markets for the masses will revolve around the trading and commerce of stablecoins built on the fundamental utility layers.

1%ers in XRP will be playing in banking territory potentially, buying out risky collateral position in stable coin and earning premium on this.

But it would change everything about how governments run finance - central banking has to get into a totally different car and let others drive - which is fascinating.

[jag216 1,551]

4 minutes ago, KarlHungus said:

Overall it seems good for xrp.  Any demand for the xrp-backed stable coins creates demand for xrp since they’re the collateral.  It creates a way to digitize other assets and use the speed and efficiency of the ledger, consequently moving more value to xrp....I think I have that right.

It allows the stablcoin money supply to be controlled by an open market of ANY ENTITY with assets to trade.

For the first time in decades, the money supply would not be in the hands of central bankers, but decentralized asset holder behold to agreeable price feeds.

In plain English, you will be able to create currency with your own assets - not just by promising to pay money back later. Savers are finally rewarded with the ability to directly empower a currency with their own assets and profit directly from the opportunity.

Edited October 10, 2019 by jag216

[invest2lose 1,826]

can something like this be done on btc?

[jag216 1,551]

2 minutes ago, invest2lose said:

can something like this be done on btc?

The decentralized exchange built into the ledger seems to be central to the process - I'm sure something similar could be bolted on to the bitcoin blockchain, but it would be far easier to use bitcoin IOU as collateral on the XRPL.

[Tinyaccount 17,773]

44 minutes ago, invest2lose said:

so, is this good for xrp?

I’m unconvinced myself.  Although it locks XRP at a leveraged rate it only does that at the start.  After that the volume is on the stable coin not XRP.  I can see that they are coupled,  but I’m not at all sure of the price dynamics of such a system.

It is possible that the growth of the stable coin usage is leveraged growth in XRP locking, but that may not be reflected in XRP price in the same way that an equivalent amount of XRP activity would be.

But this might just be a spectacular failure of vision on my part...  I can easily imagine being very embarrassed about my short-sightedness at a later date.   

[jag216 1,551]

Man, rewatching the segment from 10:30 or so - if that doesn't speak to the democratizing of money I don't know what does. Anyone can create a position - there is no authentication process. You pledge collateral and if a position doesn't already exist, it is created. This means you are free to pledge your assets in order to receive money on the ledger. Creating a position = bringing more of the stablecoin into existence. Redeeming a position = exhausting the stablecoin from the supply - it vanishes.

Chills. Chills. Where's Bob Way to comment on this video man?

[Staigera 1,329]

This all sounds 10 years in the future talk, if banks allow it sounds like alot of power being stripped from the banks and handed over to the people.

The last guy who tried to take power from the banks got shot in the head. 

[yxxyun 921]

OP

[XRPboi 507]

2 hours ago, Tinyaccount said:

I’m unconvinced myself.  Although it locks XRP at a leveraged rate it only does that at the start.  After that the volume is on the stable coin not XRP.  I can see that they are coupled,  but I’m not at all sure of the price dynamics of such a system.

It is possible that the growth of the stable coin usage is leveraged growth in XRP locking, but that may not be reflected in XRP price in the same way that an equivalent amount of XRP activity would be.

But this might just be a spectacular failure of vision on my part...  I can easily imagine being very embarrassed about my short-sightedness at a later date.   

I wonder the same. Galgitron says that arbitrage would even out the pricing between the two.

But this all seems very exciting - especially considering how quickly the total circulating supply could be eaten away at. I hope something comes from this. 

R3 will be talking about tokenizing assets later this month. Let's see if that plays into this at all.