pnsh Posted December 30, 2019 Share Posted December 30, 2019 Hey @JoelKatz Volcker rule: Prevents banks from holding positions deemed speculative, prevents banks from prop. trading, and making bad bets. But what happens when the #Volcker Rule is tweaked to allow banks to hold (not trade) speculative 'crypto' positions ($XRP) to help streamline their business and make them more efficient? Speculative trades are held in the trading book, what if XRP was held in the banking books by financial institutions. #ODL and #XCurrent = is the plumbing, and XRP is the liquid that flows through it between financial insitutions to help them settle transactions faster - it helps financial institutions stay liquid by eliminating the need to lock liquid cash reserves in domestic and foreign FIs. If FIs hold XRP, then what happens to the price of XRP? Is there enough XRP for all financial instituions to hold as a commodity in their book? What happens when there just isn't enough XRP for FI's to hold, what happens to the value of XRP? Inorder for any of this to happen the Volcker Rule needs to be tweaked. This only works if XRP is classified as a commodity and not a security BTW: Trading books hold all tradeable financial assets of a bank and the banking book refers to assets on a bank's balance sheet that are expected to be held to maturity. dassy23, XRP_Carolina, Xill and 2 others 4 1 Link to comment Share on other sites More sharing options...
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