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XRP Global Reserve Currency


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12 hours ago, KarmaCoverage said:

You are correct, it is an idiotic problem to be solved. You need to do more research

 

3 hours ago, Julian_Williams said:

Is that all you have?

On all three points you are demonstrably wrong. 

Point 1. Banks have nostro and vostro accounts - the money is separated as to whether it is at home or languishing abroad.  The amount of idle money has been estimated as 20 trillion (I think that was the figure?) and growing.  The system is so expensive to run that they have given up running FX services to some underdeveloped smaller countries.

Point 2. Bitcoin is slow, expensive and cannot be scaled without fixes like Lightening, which abandons the principles of blockchain decentralisation.  So is ETH. (but I believe some fixes are in the pipeline?)

Point 3.  It seems investors are obsessed by price movements more than doing research in which coins have long term potential.  Hence after a 33,000% ATL XRP had to take a longer to consolidate than other currencies that had gone up an order of magnitude less.  Everyone then began judging XRP, with its expanding ecosystem and technological advantages, as a failure because it did not re-gain in price during 2018-19 

I do not like to accuse people of having low IQ's, because actually it is common sense that make people behave stupidly. Perhaps I will just leave it at saying your 3 responses lack due diligence and common sense. 

 

You are asking me to do some research?  You show me some research.  If it's a 20 trillion liquidity problem for banks and all that massive amount of money locked up doing nothing, there should be hundreds of academic articles, publications, analysis from banks about this confounding problem that is costing banks billions of dollars per year.  Show me a dozen or so sources that detail this massive problem.  You can't -- all you have is paper from McKinsey that mentions liquidity in Nostro accounts and Ripple hyped that up and ran with it saying they were solving a trillion dollar problem.  So Ripple solved this trillion dollar liquidity problem for banks and yet there is not one single bank that is interested in using XRP.  You can claim I am wrong all you want but the evidence points to the fact that it is Ripple has hyped XRP as a solution for a trillion dollar problem that doesn't exist 

 

 

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You are correct, it is an idiotic problem to be solved. You need to do more research

Um, er,  isn’t that exactly the case?  Just as in olden days of inventory...  back then warehouses had stacks of items that were there for future need.  Just-in-time inventories changed all that.  Exa

whether you like Galgitron or not, and plenty do not like his style of writing, he is far from being a moron.  He is a very original and intelligent thinker who works from first principles.  As such h

5 minutes ago, fatlever said:

You can't

I did... it was just a few years ago

I just didnt write an academic paper about it, because yeah. If I remember right Basel 3 made the balances that banks hold on deposit at other banks to support their inter-bank clearing & settlement, aka "Nostro" accounts...  no longer counts or contributes to their Capital Reserve. Thus the money is "dead". 

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13 minutes ago, KarmaCoverage said:

I did... it was just a few years ago

I just didnt write an academic paper about it, because yeah. If I remember right Basel 3 made the balances that banks hold on deposit at other banks to support their inter-bank clearing & settlement, aka "Nostro" accounts...  no longer counts or contributes to their Capital Reserve. Thus the money is "dead". 

LOL its such a big problem you can't even PAY banks to solve it with XRP!

Cue the regulations excuse.... So sick of that excuse!

You know there is a WHOLE world out there besides the US, some have even given XRP the regulatory OK. Guess what you can't pay those banks in those countries to use it either to solve this mysterious trillion dollar problem.

XRP volumes are pathetic even in places where they have regulatory approval and can use XRP.

No one wants it.

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54 minutes ago, KarmaCoverage said:

I did... it was just a few years ago just didnt write an academic paper about it, because yeah. If I remember right Basel 3 made the balances that banks hold on deposit at other banks to support their inter-bank clearing & settlement, aka "Nostro" accounts...  no longer counts or contributes to their Capital Reserve. Thus the money is "dead". 

 

Your post is really not academic research, analysis or evidence of that there is a trillion dollar liquidity problem that is tying up money for banks and Ripple has a solution to this problem.  It is typical crypto hopium provided by people doing a bit of googling calling it research and analysis.   

  

On 3/13/2018 at 11:16 AM, KarmaCoverage said:

The main idea I am thinking about here is, "How exactly could this freeing up this nostro/vostro capital actually impact the banking systems inventory of money available to lend?"

http://www.basel-iii-accord.com/

I dont know much about Basel 3 other than it was done post crash, and focused a lot on bank capital requirements. Doing a little bit of googling....

The question is, "How are the funds currently deployed in Nostro/Vostro accts contributing to capital requirements?"

I assume it works so that if bank A had ....

Or is it 25%? ....

......

If adopting xCurrent and especially xRapid (due to sourcing liquidity not from deployed nostro/vostro capital, but rather from public trading activity) enables the banks to reclassify these funds in a way that improves the factor applied to these funds... the banks will be very seriously interested in learning more.

Does anyone here have a more detailed understanding of Basel 3, and/or know how these funds may reclassified when the "deployed funds can be called back"? Please point me to some links and other info. .....

 

Edited by fatlever
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7 minutes ago, fatlever said:

 

Your post is really not academic research, analysis or evidence of that there is a trillion dollar liquidity problem that is tying up money for banks and Ripple has a solution to this problem.  It is typical crypto hopium provided by people doing a bit of googling calling it research and analysis.   

They dont write regulations for problems that dont exist. 

Pre Basel 3, N/V balances contributed to a bank's Reserves, thus increasing the amount of money they can lend out, thus increasing the bank's leverage. After the crash, they reduced the amount of leverage that is legally allowed. Then banks starting pulling back their Nostro balances, which has been driving a reduction in the Correspondent Banking network's ablilities.

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38 minutes ago, KarmaCoverage said:

They dont write regulations for problems that dont exist. 

Pre Basel 3, N/V balances contributed to a bank's Reserves, thus increasing the amount of money they can lend out, thus increasing the bank's leverage. After the crash, they reduced the amount of leverage that is legally allowed. Then banks starting pulling back their Nostro balances, which has been driving a reduction in the Correspondent Banking network's ablilities.

 

Basel III came out because of the 2008 crisis and banks taking a shit load of risk with all type of derivatives and counting them as reserve capital.  Basel III has guidelines that a much higher amount of tier-1 capital needs to be maintained among other things.  I don't have a finance background but I know a bit of this because I worked with a big 3 bank in 2009 in a technical role developing applications to do fed stress tests which were Basel II compliant and had to be Basel III compliant in the coming years to show that that the banks capital reserves could absorb various stress test scenarios handed by the Fed on a quarterly basis.  The idea of Basel III being implemented because of Nostro balances increased the banks leverage is plain silly.

 

 

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18 minutes ago, fatlever said:

The idea of Basel III being implemented because of Nostro balances increased the banks leverage is plain silly.

That is not "the idea" at all. N/V accts were one of the...

18 minutes ago, fatlever said:

Basel III came out because of the 2008 crisis and banks taking a shit load of risk with all type of derivatives and counting them as reserve capital.

and they no longer count towards reserve capital. It's just the way it is post Basel 3, I guess Basel 2 allowed it.

The main idea was that there is trillions of "dead capital" sitting in these N/V accounts. Now that those balances dont count towards Reserves, the money needs to earn it's return via TX fees or something, otherwise it is becomes "dead". You were asking for Proof this problem existed. I simply pointed to global banking regulations as evidence, we dont regulate things that dont exist.

FYI, banks can do Correspondent Banking methods using N/V accounts on RippleNet without touching XRPL. I think  that is how RippleNet started and still mostly operates. ODL is where XRPL comes into play.

Edited by KarmaCoverage
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5 hours ago, fatlever said:

 

 

You are asking me to do some research?  You show me some research.  If it's a 20 trillion liquidity problem for banks and all that massive amount of money locked up doing nothing, there should be hundreds of academic articles, publications, analysis from banks about this confounding problem that is costing banks billions of dollars per year.  Show me a dozen or so sources that detail this massive problem.  You can't -- all you have is paper from McKinsey that mentions liquidity in Nostro accounts and Ripple hyped that up and ran with it saying they were solving a trillion dollar problem.  So Ripple solved this trillion dollar liquidity problem for banks and yet there is not one single bank that is interested in using XRP.  You can claim I am wrong all you want but the evidence points to the fact that it is Ripple has hyped XRP as a solution for a trillion dollar problem that doesn't exist 

 

 

for instance, a report from Visa Comercial on "The Inefficiencies of Cross-Border Payments: How Current Forces Are Shaping the Future"

 http://euro.ecom.cmu.edu/resources/elibrary/epay/crossborder.pdf

 

page 5 they cite the pain points for cross-boarding payments existing today and cite that same McKinsey report you are trashing down.

 

a report from Citi bank on cross-border inefficiency here:

https://www.treasury-management.com/article/1/245/2041/managing-cross-border-payment-costs-risks-and-efficiency.html

 

for example in 1999 the ECB provided a report on the inefficiency of cross-bord payments in the Euro Zone pre-euro.

https://www.treasury-management.com/article/1/245/2041/managing-cross-border-payment-costs-risks-and-efficiency.html

they noted several of the reminiscent pain points that still exist today, but outside the EU. The Euro brought a level playing field for every european retailer becuase of the single coin. This is very reminiscent from the problems of cross-border payments today.

you just need to look for it in order to find "the research".

 

 

Edited by buh
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On 10/23/2020 at 11:52 AM, Julian_Williams said:

It is predictable that XRP, perhaps more than other crypto, attracts delusional investors and hype merchants.  (Actually I would argue the biggest delusion is amongst the Bitcoin maxi tribe).  But it would be a mistake to take these people, who are really fluff, as indicative of the seriousness of the product.  In XRP's case a bridging currency that enables ODL.  

Digital money, and DLT/ODL/Micropayments/Smart Contracts/DeFI have been released on to the world and will never go back in the box.  Anyone who gets in early on buying the successful tokens that will be used in this expanding market will be very rich.  Personally I cannot see XRP being wiped out in the race to service this sector, so for me buying and holding XRP is not delusional at all.  It is taking a stake in new technology that is inevitable.  I accept the risks and I think my expectations are not "delusional", although I can see I have many fellow travellers who are delusional and will get their fingers burnt.

It's weird that we see other crypto communities as more delusional while XRP is still down tremendously and there's no real clear upswing yet. Their flagship uber product (ODL) was performing so well that they decided to abandon the value transfers they were doing and move to high volume low value instead. Probably because they want to drag down the price so they could buy the flash sale. What's the growth in ODL this year (well I know there is no growth there was a decline :D )?

In the mean time BTC is becoming seriously bullish again, companies are positioned, ... 

In regards to the Micropayments, DLT, ODL, SC, DeFI, ... what does this have to do with XRP? Let's not lie to ourselves here:

- micropayments: I hope you're not referring to the XRP subscription based model touted as micropayments. That's not usable and has no traction. NONE. apart from a few tech (and more specifically XRP enthousiasts)

- DLT: this is not specific to XRP. And not even to crypto if you really understand what it means.

- ODL: AFAIK it had a tremendous setback by the success of it so we're back to low value, high volume transfers. From 20 milion$ a day to 5 mill if it's a sunny day.

- SC: there's plenty of SC platforms and XRP basically has none. The flagship uber product called Codius is basically abandoned. And whatever else they built is platform agnostic (which is the way it should be, just like ILP) so it's not an advantage.

- DeFI: what does XRP has to do with DeFI? They didn't focus on it and are neither now.

"Anyone who gets in early on buying the successful tokens that will be used in this expanding market will be very rich." That's just like picking stocks. EZ PZ right (in retrospect that is).

I'm not saying buying and holding XRP is delusional. But the expectations that are put up are. It's just sad to see for XRP that they still don't seem to get any traction. And I agree Ripple does have a product with a use-case and product market fit. But that doesn't mean anything in regards to valuation of XRP. XRP is seriously overpriced in regards to utility and it has no traction, no branding (except for the branding that it's the "luny" coin, the 589-EOY-2018 coin, ...) and has no developer community (seriously: nobody is doing anything with XRP just buying and talking 3 to 5 letter acronyms, nobody is interested in even doing the slightest work on the XRPL or build XRP based products. Why would you if you can use ILP and not take part in this religious war).

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On 10/23/2020 at 2:59 PM, fatlever said:

If it's a 20 trillion liquidity problem

Are you a parrot? That number has varied hugely. From 20+ trillion to 7 trillion. And that's not taken into account any improved efficiencies like faster and bidirectional messaging. You think SWIFT is sitting there doing nothing?

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On 10/23/2020 at 2:14 PM, buh said:

for instance, a report from Visa Comercial on "The Inefficiencies of Cross-Border Payments: How Current Forces Are Shaping the Future"

 http://euro.ecom.cmu.edu/resources/elibrary/epay/crossborder.pdf

 

page 5 they cite the pain points for cross-boarding payments existing today and cite that same McKinsey report you are trashing down.

 

a report from Citi bank on cross-border inefficiency here:

https://www.treasury-management.com/article/1/245/2041/managing-cross-border-payment-costs-risks-and-efficiency.html

 

for example in 1999 the ECB provided a report on the inefficiency of cross-bord payments in the Euro Zone pre-euro.

https://www.treasury-management.com/article/1/245/2041/managing-cross-border-payment-costs-risks-and-efficiency.html

they noted several of the reminiscent pain points that still exist today, but outside the EU. The Euro brought a level playing field for every european retailer becuase of the single coin. This is very reminiscent from the problems of cross-border payments today.

you just need to look for it in order to find "the research".

 

 

 

Hype machine Ripple, low IQ XRP shill bloggers like Gagligatron and a lot of the echo chamber in here are claiming there is a $20 trillion dollar liquidity problem with money that is sitting idle in banks nostro accounts.  I stated if there is such a massive problem, there must be loads of research, analysis, papers published in journals that describe this monumental problem.  KarmaCoverage pointed to his own googling and Basel III are research which is clearly crypto hopium and conflating the goals of Basel III for something else.   And you sir are pointing me to papers where they describe the "Inefficiencies of Cross Border Payments" as below and nowhere does it state that there is 20 trillion dollars sitting idle in nostro accounts looking for a solution.

Quote

A report by the European Central Bank, however, finds this method to be the most costly and inefficient due to the use of non-standard customer interfaces, incompatible formats between domestic and foreign banks, and the low degree of automation in banks’ internal systems

If there was such a massive problem and Ripple was solving it, Ripple would have large number of academic sources and published their own in-depth research papers describing the problem and solution.  Of course it's easy to shill this hype to gullible crypto investors but if Ripple were to actually publish this claim in an academic journal, it would be torn to pieces as fluff and bullshit so it's understandable why they have not published any in-depth research about this problem they are solving.  The lack of any evidence and the fact that no bank has shown interest in using XRP means this was more hype than anything else from Ripple.  

 

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