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US Federal Reserve Tests And Approves Ripple - 031

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An analysis by The modern investor on youtube. He talks about the Fed endorsed Ripple when the Winklevoss Twins got turned down for their ETF, that was 2 years ago. When the Fed adopts it, and it replaces Fiat currency, it will shoot to the moon. 

 

 

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1 minute ago, Montoya said:

Replaces fiat currency? lol. I think you may be a tad overzealous in your prediction. 

There's still a large percentage of the human population that has little/no access to technology, and even among those with access, very few are dabbling in crypto. It'll be a Herculean/impossible task to replace fiat with crypto because of this. Any crypto-anarchist that dares say otherwise are obviously lying, deluded or smoking up something strong.

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There will undoubtedly be a fed coin. But it will be inflationary and still effectively fiat. The real question is will issuance will be dictated not by the cold and trusted logic of math and science, but instead by the whim of politicians. My guess is the latter, as the power to inflate is what allows politicians to promise the moon every four years. However, even if/when that occurs, as long as they do not outlaw competing asset classes (ie XRP, BTC, etc) then we still be in a far better place than we have been in the past.

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US Federal Reserve Tests and Approves Ripple

How many people will read "US FEDERAL RESERVE TESTS AND APPROVES XRP"?

4 hours ago, surfadoc said:

When the Fed adopts it, and it replaces Fiat currency, it will shoot to the moon. 

Might be tricky since Ripple markets XRP as a compliment to fiat as opposed to the replacement strategy many bitcoiners embrace. The Fed will NEVER adopt XRP. To @natethesnake's point though, that doesn't Ripple or other cryptos can't or won't be adopted in a transformative way. 

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Posted (edited)

Nobody really knows what the Federal Reserve might do, or how they might theoretically use the XRP Ledger. 

IMO the highest probability is that Ripple's submission to the Faster Payments Task Force will provide a clue, since that's probably what any official comments were based on. 

https://fasterpaymentstaskforce.org/wp-content/uploads/ripple-vs.pdf

Edited by Hodor

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In their proposal, Ripple begins by emphasizing the flexibility of ILP, which is smart, since the Interledger protocol enables communication with any other ledger that has an ILP plugin. 

Then they move on to describe XRP's role in reducing costs in certain corridors, specifically any digital-to-fiat conversions, which is where the future is heading!  IMO this was the perfect strategy, since it addresses government's anxiety towards the new trend of crypto-currency:

Quote

 

In our initial proposal, we describe how providers can use multi­hop payments through a bridge network or bank to expand reach. One such bridge network that can be used is a distributed ledger where a digital asset, such as Ripple’s native asset XRP, can be used in transactions.  XRP enables providers to have global reach without requiring the high costs of pre­funding nostro accounts around the world.

Providers use a digital asset like XRP to transact directly with counterparties, without the cost of a holding an account or funds in other countries. This enables providers to make payments globally from capital held solely in their domestic country.

XRP is an independent digital asset – meaning it is not pegged to any fiat currency or issued by one or a group of entities. Trades of XRP on the open market determine its price. It is convertible into whatever fiat currencies traders are will to quote an exchange for.

The design of an independent digital asset is essential for cross border payments, as it is not contained to any one country or tied to any particular currency. This allows XRP to be truly global in reach.

Alternative approaches have been considered by others in the market, yet we see limitations that make them ill suited for cross­border payments. Some have considered a digital asset that is issued by one entity, or group of entities, yet we expect this design will struggle to achieve adoption and reach outside of the founding entities. This design requires all users around the world to trust a select few parties who created the asset. While such a design could be viable for certain use cases, it will struggle to achieve scale and reach needed for a cross­border payment tool.

Another option floated has been a digital coin that is backed by cash. Yet, backing a coin with cash makes it a liability, not an asset. This is a crucial difference, as trading liabilities requires moving cash across borders for final settlement, re­creating today’s fractured system but with added friction.

Ripple’s experience with distributed ledger technology, progression to a protocol solution and development of an independent digital asset altogether enable a scalable, secure, efficient system for cross­border payments.

 

B)

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12 hours ago, natethesnake said:

There's still a large percentage of the human population that has little/no access to technology, and even among those with access, very few are dabbling in crypto. It'll be a Herculean/impossible task to replace fiat with crypto because of this. Any crypto-anarchist that dares say otherwise are obviously lying, deluded or smoking up something strong.

It is possible to have both working side by side, we basically have that now and I and I do believe that FIAT will eventually fade away and will be replaced by crypto. I think before the Fed's will fully adopt XRP they will and probably are getting, all there ducks in a row and they have a lot of ducks. Ducks that we don't even know exist. I can only imagine how much red tape and toe stepping needs to happen in order to move forward. XRP, is the governments best choice of all the crypto's out there which is how the guys of Ripple designed it, to attract the money makers of the world. You are also correct that many people do not have access to the internet, just last night on our local news they discussed how certain counties still have dial up and some have no connection but that it was the goal of the county to provide that to the backwoods folks :). So as our communities get our ducks in a row so is our states and governments and eventually the new world of cryptocurrency will be widespread and the currency that will lead the way is XRP.

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Not only that, but even though they "stay positive" they manage to take a parting shot at the competition.. man I'm telling you, these guys know how to market.  I've written a LOT of proposals like this in my time with the "Big 4", and this is good stuff

Quote

Another option floated has been a digital coin that is backed by cash. Yet, backing a coin with cash makes it a liability, not an asset. This is a crucial difference, as trading liabilities requires moving cash across borders for final settlement, re­creating today’s fractured system but with added friction.

 

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The topic of educating the masses should be discussed more. How can we as people in the know spread information to those without a clue. There is so much to learn and so much evolving everyday that it's dizzying to grasp. There are internet of things, (IOT,) internet of value, (IOV,) internet of everything, (IOE,) cryptocurencies, machines communicating with each other, washing machines that reorders its own detergent, refrigerators that resupply themselves ect... There is no end, it's evolution happening right before our young eyes and those involved in the creations are too caught up in it to pause long enough to try and explain it to those less savvy. Then those of us that are somewhat savvy or in the know of the basics are too busy trying to keep up with the daily change. There is a niche here to be filled and that is; a way to teach, train and assist others what we know is coming, The Evolution of Technology. Someone should create a net of knowledgeable tech guys and gals and send them out to every city in the world, get them on the mainstream news, in schools, colleges, tech schools ect.. Right now if you mention the IOT to a co-worker they will have no idea what you are talking about. 

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http://fortune.com/2017/07/25/bitcoin-ethereum-cryptocurrency-predictions/ 7 Cryptocurrency Predictions From the Experts

I like this article, all but the last sentence... "Smith, meanwhile, was less optimistic about incumbents’ ability to adapt to such change. “I don’t think there will be a lot of room for banks to simply adjust their price models,” he said.

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