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Montoya

Do State Backed Cryptos Mean the Window is Closing For Ripple?

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5 hours ago, Drew said:

This may have been pointed out already, but...

What rail would this crypto dollar ride? Visa, ACH, SWIFT. What incentive would the established rails, mostly privately owned, have to move crypto dollar or Yuan?

Let's say for kicks the fed developed its own ledger, would that ledger support a digital Philippines Pecos?

If we end up with 100s of ledgers how is this different than the hundreds of rails in place today. 

Will this crypto dollar be a "stable coin"? If so it's more like a liability than an asset which is counter productive to the idea of crypto currency, or crypto asset. We already have an IOU based system- for crying out loud we finance coffee with our bedt cards, lol.

This could all pan out in many seen and unforseen ways. Today, my bets on XRP ledger plus ILP.

It would need no rails. That is the whole point. What rail does bitcoin ride? It rides on the blockchain. A USD crypto would do the same. The Federal Reserve would control the blockchain as you mentioned. A fed ledger would not need to support philippine pesos either, or any other currency to be of use as a bridge currency. All that would be needed is someone in the philippines who has a local bank account and wants to buy USD crypto in exchange for pesos (ie market maker). It would be no different than buying bitcoin.

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11 hours ago, Archbob said:

I'm not sure they would always have access to an infinite amount of that. Yes, we do print a lot of it, but there are controls to a stablecoin. All our money is digitalized now, if the US didn't control its own monetary policy, they would do it right now.

Our money is NOT currently digitized though. I think that is one the biggest misconceptions here. What IS digitized in our current system are bank IOUs. You trade your physical dollars (which act as assets) in exchange for an IOU from whatever bank you utilize. 

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3 hours ago, XLogic said:

Please, check out this blog post from a little more than a year ago when the idea of central bank currencies still sounded like a joke. It's a really good piece that may expand your view on the matter, touching matters of bretton woods, central banks and the nature of SDR's. I am not able to describe it in a good synthetic way, its a quite long article, however one of its points is that the tides are shifting in global economy,  the US dollar as a world's reserve currency is most likely done, and surprisingly it may be even in the interest of the US itself. Just ignore the title, the content is not that hypish as the title suggests.

https://philosophyofmetrics.com/xrp-the-standard/

 

 

 

I can see the world definitely wanting to shift away from USD hegemony for various reasons. And I am familiar with the role of SDR. I think it would be greatly beneficial. But, once again, it is not governments who will be providing liquidity in the Ripple model, it is commercial market makers. If we have XRP and USD cryptos competing, I don't see people preferring a less liquid asset as a bridge. Obviously this could all change very quickly, and if that is the argument that most of you are making, then I can understand your point. But, if we assume the dollar maintains its preferential place as world reserve currency for the next 2-5 years, in which time a USD crypto is released, would my concerns not be valid?

I think the misunderstanding is occurring because you guys are talking about what is ideal and I am asking what is probable. I agree with you that the USD crypto would have a host of problems. A non-state asset would be far better for a number of reasons, both for the US and other countries. But my question is, what would actually happen if a USD crypto were introduced in say a years time. Everyone complains about the current dollar hegemony, but there seem to be very few concrete steps to change it. Barring other unforeseen developments, what impact would a crypto USD have?

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Perhaps a separate topic, but when I read some of the headlines over the past year, along with seeing the hiring/transfer of RL employee(s) to the US Govt, it makes my conspiracy side entertain the thoughts that the plan is to peg XRP to the USD. 
Far fetched and yes it has some obstacles (escrow ownership) but the only real reason I can see that the US govt would not partner with (read confiscate) XRP is that there is a fixed overall supply. You cannot create more XRP.  Govts need to be able print more money in order to purchase more rights from their citizens through endless spending with no results.

I do not have the ability to check the tech myself, but it would be nice to hear from those who know.

Yes/No.:  “XRP Max Supply is permanently fixed, and cannot be increased through rule changes.” 
Re stated: “XRP total supply can only decrease, and never increase”

 

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Just now, Valhalla_Guy said:

Perhaps a separate topic, but when I read some of the headlines over the past year, along with seeing the hiring/transfer of RL employee(s) to the US Govt, it makes my conspiracy side entertain the thoughts that the plan is to peg XRP to the USD. 
Far fetched and yes it has some obstacles (escrow ownership) but the only real reason I can see that the US govt would not partner with (read confiscate) XRP is that there is a fixed overall supply. You cannot create more XRP.  Govts need to be able print more money in order to purchase more rights from their citizens through endless spending with no results.

I do not have the ability to check the tech myself, but it would be nice to hear from those who know.

Yes/No.:  “XRP Max Supply is permanently fixed, and cannot be increased through rule changes.” 
Re stated: “XRP total supply can only decrease, and never increase”

 

Pegging the price of XRP would make it worthless as a bridge currency. It would create the same distortions as price setting any commodity. 

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Just now, Montoya said:

Pegging the price of XRP would make it worthless as a bridge currency. It would create the same distortions as price setting any commodity. 

I did not realize that the USD was worthless as a bridge currency. The word TRUST will always be part of currency exchange. The most trusted currency naturally becomes the bridge, speed is secondary.

When it comes to bridges, “getting there” is always more important than “getting there sooner”

I believe you only view “worthless” from a holder’s perspective, and forget the viewpoint of the powerful. 

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2 minutes ago, Valhalla_Guy said:

I did not realize that the USD was worthless as a bridge currency. The word TRUST will always be part of currency exchange. The most trusted currency naturally becomes the bridge, speed is secondary.

When it comes to bridges, “getting there” is always more important than “getting there sooner”

I believe you only view “worthless” from a holder’s perspective, and forget the viewpoint of the powerful. 

The USD is not pegged though. It has a free floating exchange rate.

My point being that XRP needs to have a floating exchange rate to be useful for market making. Otehrwise it cannot expand and contract with demand. 

Edited by Montoya

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7 hours ago, Valhalla_Guy said:

Yes/No.:  “XRP Max Supply is permanently fixed, and cannot be increased through rule changes.” 
Re stated: “XRP total supply can only decrease, and never increase”

Nothing is absolute in this universe except perhaps the laws of Thermodynamics.  And they are only aggregate emergent properties.  :) 

But yeah, XRP supply is fixed.  It cannot change under the current invariant rules.
 

On the other hand, if a quorum of nodes agree and support a code change then yes, it could change.  However that is extremely (I would say monumentaly,) unlikely.  
 

There is zero demand for that at this stage,  and convincing a disparate world wide community,  (who have deliberately bought into the existing rules,) to act against their own self interest and philosophy is not likely.  This is why decentralisation is not just a buzzword...  it’s an important property that is much desired and is critical to ensuring the network functions as desired irrespective of small (or large) groups’ desires.

So for all practical purposes, yes,  the supply IS invariant.

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11 hours ago, Tinyaccount said:

There is zero demand for that at this stage,  and convincing a disparate world wide community,  (who have deliberately bought into the existing rules,) to act against their own self interest and philosophy is not likely.  This is why decentralisation is not just a buzzword...  it’s an important property that is much desired and is critical to ensuring the network functions as desired irrespective of small (or large) groups’ desires.

 

I'll just throw this in their for sake of argument. An asset controlled by a worldwide community will better suit worldwide needs than a currency controlled by a single nation. (trying to simplify Tiny's statement).

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3 hours ago, peanut56 said:

 

 

I'll just throw this in their for sake of argument. An asset controlled by a worldwide community will better suit worldwide needs than a currency controlled by a single nation. (trying to simplify Tiny's statement).

Keeping it simple: How does the "community" protect it's currency without the benefit of armies? How does a "community" build trust without security?

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2 hours ago, Valhalla_Guy said:

How does the "community" protect it's currency without the benefit of armies? How does a "community" build trust without security?

   Sorry I should have said a digital asset, since there is a grey area of the definition of what xrp is. I would assume that if it is utilized as a form of international exchange then there would vested interest by all nations, businesses, and people involved to protect the asset. I think that most governments understand that today it would be difficult to feed your people without international trade. If people go hungry then there is usually revolution. If the world's businesses choose to utilize a nation neutral asset to conduct trade I'm sure that there are plenty of companies willing to make weapons for armies to fight for security. XRP can help facilitate the trade of value to construct your weapons.

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