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Private Ledger for CDBCs! Rip XRP?


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47 minutes ago, Slick said:

You can find articles dating back to early 2019 of Matt Carney (ex Bank of England governor) calling out the IMF to help usher in a new global currency. Carney's solution he suggested was a  "synthetic hegemonic currency ... provided ... perhaps through a network of central bank digital currencies"

Maybe a stablecoin pegged to a basket of major fiats? (USD, EUR, GBP, JPY, etc)

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2 minutes ago, Seoulite said:

Maybe a stablecoin pegged to a basket of major fiats? (USD, EUR, GBP, JPY, etc)

Yeah, they've actually said this multiple times. It wouldn't be 100% USD but still heavily weighted to USD(50-60%)

Edited by Archbob
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7 hours ago, NMNR said:

What has that got to do with anything? Doesn't detract the fact that Ripple can sell their own technology and conduct business outside of xrp. 

The way you wrote it interprets like Ripple never required XRP because they are strong fintech company. Without XRP ripple would be bankrupted long time ago. 

Even DS mentioned few times that Ripple would be not liquid without dumping XRP.

Tbh, judging by the things Ripple and their CEO have done so far , I wouldnt be surprised at all if they ditch XRP for ODL and just go with xPring which did nothing in couple of years. It only created further selling pressure.

I mean, even Ripple employees which are active on this forum stated mutile times that Ripple owns nothing to retail investor. Now go figure.

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XRP as a bridge asset works were there is friction between legacy rails. At this point in time using XRP is cheaper (partly because Ripple subsidises) and has a 2-5 working day time advantage.  If all the CB's on the planet are using their version of XRPL (or any other DLT), there is no need for a bridge asset. They could just have some MM's collect a small arbitrage fee and send funds in near real time.

All CB's on DLT will probably take half a decade, so it's important that XRP is liquid and the cones sufficiently spread out before that happens.
ODL is here to get that going, with the help of money transmitters like MGI.   When XRP is liquid and network effects have firmly taken place. Holding XRP will be more like a hedge against FIAT. It wil be called the poor mans Bitcoin by then.


The only good thing regarding this news, is in terms of development: It coul be beneficial having more devs working on the same code.

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10 hours ago, King34Maine said:

Yeah, I wouldn't expect there to be a need for XRP in the short-term for bridging CBDCs either. Actually, I don't expect it for the next few years as there just won't be enough countries with a production-ready CBDC platform to warrant the use of XRP as a bridge within the next few years. In the immediate term RippleNet (i.e. Ripple's private/permission-based settlement platform) will suffice. Ripple is taking the same approach they did prior to launching xRapid (now ODL) back in 2018. Ripple had to build/create their customer-base, a network of banks, FIs, and payment providers, connect them so that ODL could be a viable product for as-needed liquidity for payments. They are using the same playbook here with CBs. Only this time, the on-boarding process will be much easier since RippleNet and the XRPL have been around and used by hundreds of institutions for +9 years without incidence. Also, RippleNet was just awarded the SOC-2 certification further validating the robustness, security, risk mitigating, integrity/viability of the cloud-based platform. I believe the use of CBDCs between countries will roll out in phases, most likely starting with the G7 and/or G20 countries. Ripple has been showcasing the utility of XRP as a bridge asset for the past 3 years via ODL. CBs around the world have been watching closely and I'm quite sure they see the viability/potential of the XRP as a bridge beyond the USD. This is one of the reasons (my opinion only) that the SEC brought this lawsuit against Ripple in the first place. Ripple isn't the only fintech company in the same boat who sold their respective digital asset in a similar manner. Where is the SEC's lawsuit against these other companies/platforms?? It's funny that Ripple has stop giving the year ending tally of customers that they've partnered with for the past 9 years or more. I think Ripple growth has the US Fed on edge a little. It's my sneaky suspicion that their partnerships aren't tallied in the hundreds anymore, but thousands. 

I don't expect CBDCs to be operational and bridged soon either, but CBs have been doing significantly more than *closely watching*. Inthanon-LionRock for example, a CBDC project initiated by Thailand and Hong Kong which quietly kicked off in 2017 and used R3's Corda blockchain, has been renamed m-CBDC Bridge and uses ConsenSys blockchain. Central banks of both countries issued a joint statement (https://tinyurl.com/3nv86k69) confirming China and the UAE have now joined the 2nd phase of this project. I don't think anybody can yet tell if Ripple's settlement platform will suffice really, as the switch from Corda (permissioned) to ConsenSys (permissionless) could suggest there are limitations to cross-border transfers based on permissioned blockchains. So yes you're right, it's still *testing* what is being carried out, but I'd say it's done at a rapid pace.

Edit: BIS, CB of CBs, is very much in support of this project.

Edited by Danny
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16 hours ago, Jmotts said:

From the article

"This also means the CBDC Private Ledger is designed for issuing currencies, with over 5,400 currencies issued on the XRPL over the past 8 years, including its native digital asset XRP — which can be leveraged as a neutral bridge asset for frictionless value movement between CBDCs and other currencies."

Do you think they just counted up all the IOUs on the ledger to get to 5400? That means they counted my prayers and thanks and dad bucks and hot dogs. Man, I miss the days when people used the ledger.

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21 hours ago, XrpChad said:

https://ripple.com/insights/ripple-pilots-a-private-ledger-for-central-banks-launching-cbdcs/

So the speculations about a hidden ledger for banks actually were true.

Imo Ripple is cutting out retail and xrp wont ever be used directly by banks or any other FI in the future.

Also they didnt mention if the cdbc ledger is a hardfork and will come with a new native asset eg. "xrp2" This would basically render xrp as a bridging utility for the 2 ledgers useless.

What does this mean for future adoption and demand of xrp?

Any thoughts?

 

Much like Ripple is actively planning contingency plans in best interest of their company (and share holders), this community should be doing the same.  Ripple's end game was always to move to profit generating software services (and transition away from profits from selling limited supply of XRP). Everyone who has worked in the Finance industry knows mass scale adoption of blockchains for banks would require private ledgers.   Ripple's timing and strategy is based on what is in best interest for them at the present time.

 

Below are a few theoretical outcomes that Ripple is planning contingency plans around: 

1. Ripple is allowed to continue selling XRP and profiting of this asset after the SEC case is resolved- Ripple will most likely try to integrate native XRP as one of the key assets utilized on their private ledger. They would still integrate and support other currencies where value is added. They would do this so they can achieve their long term goals of generating profit from software services on mass scale with banks.  As well as bump up value of XRP to increase profits when they sell XRP in the future.

2.Ripple is not allowed to continue selling XRP and profiting of this after the SEC case is resolved- They will have already set themselves up to easily rely on selling software services, that are not reliant on XRP. They can stop supporting XRP growth, easily transfer to support any other currency on their private ledger.  As well as easily integrate with other fiat, stable coins, etc.

 

This community should be planning contingency plans in best interest of the whole community, just like how Ripple is doing for themselves.  If Ripple commits to expanding growth for the native XRP asset in the future, then great.  If they don't, then that is fine if community planned long term growth options without them.

 

Edited by wogojump
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12 minutes ago, wogojump said:

Much like Ripple is actively planning contingency plans in best interest of their company (and share holders), this community should be doing the same.  Ripple's end game was always to move to profit generate software services (and transition away from profits from selling limited supply of XRP). Everyone who has worked in the Finance industry knows mass scale adoption of blockchains for banks would require private ledgers.   Ripple's timing and strategy is based on what is in best interest for them at the present time.

 

Below are a few theoretical outcomes that Ripple is planning contingency plans around: 

1. Ripple is allowed to continue selling XRP and profiting of this asset after the SEC case is resolved- Ripple will most likely try to integrate native XRP as one of the key currencies utilized on their private ledger. They would still integrate and support other currencies where value is added. They would do this so they can achieve their long term goals of generating profit from software services on mass scale with banks.  As well as bump up value of XRP to increase profits when they sell XRP in the future.

2.Ripple is not allowed to continue selling XRP and profiting of this after the SEC case is resolved- They will have already set themselves up to easily rely on selling software services, that are not reliant on XRP. They can stop supporting XRP growth, easily transfer to support any other currency on their private ledger.  As well as easily integrate with other fiat, stable coins, etc.

 

Just like how Ripple is proactively setting contingency plans that are in the best interest of themselves. This community should be doing the same.  The community should be planning what is best interest for the community as a whole.  If Ripple commits to expanding growth for the native XRP asset in the future, then great.  If they don't, then that is fine if community planned long term growth options without them.

 

thanks for the detailed response. As you mentioned every investor should consider both possibilities. Xrp might develop its true potential after ripple abandons it.

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8 hours ago, Archbob said:

Yeah, they've actually said this multiple times. It wouldn't be 100% USD but still heavily weighted to USD(50-60%)

I'm not sure it will be a stablecoin pegged to a basket of major fiats, though I'm aware some have been suggesting it. If it is a stablecoin pegged to a basket of major fiats, devaluating any of the currencies contained by the basket, will directly affect the value of the stablecoin itself. If multiple currencies contained by the basket are being devalued, the stablecoin devalues proportionally. I'm not an expert but from what I understand, this conducting of trade wars has been something everyone wants to prevent from happening.

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10 hours ago, nikb said:

I’ll point you to Ripple’s blog post; I have nothing further to add.

Thank you for taking time to be here. You are appreciated, and we are grateful for your insights! 

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39 minutes ago, VanGogh said:

Excellent thread:

 

Amazing for day dreaming, but so full of assumptions and hope (which I am running out of personally). The big idea being that XRP - currently not trusted enough to be listed for sale in the USA - will be the center of the new financial universe. 

Information asymmetry got Ripple into some trouble. Perception asymmetry can do the same to us. From our perspective, we've uncovered this thing that could facilitate the global financial system. From the perspective of the global financial system, this thing (owned by this 1 company) cannot hold leverage over the global financial system. 

I'm seeing the same sort of asymmetry with other crypto projects I have started following to hedge from this one. My fear is that the projects I keep landing on believe they can fix something that is too complicated (or too fortified) to fix. 

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