Does newly announced official banking sector owned crypto threaten Ripple's xrp?
I've long said that I love ripple the company but am not sure about xrp the currency. Does this article announcing a new crypto token, jointly owned by 6 large banks, to be used in transfers between banks threaten what xrp is supposed to do?
I'd be interested in your thoughts. It was announced today in the Financial Times.
I've heard about this before - I think @maxkeiser might have mentioned it on his show - however I'm not at all worried about it competing in any way with XRP or Ripple the technology. FTR I'm on board with your XRP vs Ripple tech feelings - if XRP reaches it's previous high again I'll probably dump most of it.
Why am I not concerned? Well no matter what blockchain they are using this is an internal and private vehicle for settlement with a small number of node - which kind of defeats the point, but whatever, I guess they think they know what they are doing. They don't want anyone seeing their huge and often crooked inter-bank transfers so they need to keep it closed off to the world and not on a public blockchain, not even a public but anonymous one, especially one that could be a victim to some kind of DDoS attack or just be broken by excessive volume by other users.
I see this as an endorsement of blockchain technology and an indication they might one day extend its use to businesses and consumers. Maybe one day ATMs will not dish out paper, just coins on a blockchain.
Good points - thanks for adding to the discussion
It is more simple than that. The Banks need to cut costs and become faster. They will use blockchain in their internal and inter-banking systems to achieve it. It will be private in some cases, and it might be centralized in many others. Blockchain is a technology, and the paradigm can work well without the transparency and openness that the initial models proposed.
In my humble opinion, a "FedCoin" backed by central banks is anathema to why cryptocurrency was developed to begin with. The technology may be great, but like all technology, it can be used with malintent. Therefore, the more decentralized the better. That said, I am an opportunist and I'd say that if you have no scruples about the matter and are solely interested in investment opportunities with cryptocurrencies that are based on fiat and central banking, then go for it! Best wishes and thank you for your thought-provoking post!
Good posts though I'm not averse to investing in something if it is for an industry that will benefit and have cost taken out. Just in this case it looks like they may have done trials on ripple but may be coming up with theyr now version for xrp. But thanks for furthering the discussion thread on here.
Hi @katythompson! Great post! Thanks for sharing. I was thinking of investing in XRP ripple soon
I would do some analysis and distinguish between the news that is about ripple's technology and the news that is about xrp the currency. The two are independent although they are often reported on as if they were the same thing. One can succeed without the other but xrp holders only gain if the currency xrp is adopted
I think you ask a fair question.
To start, I dont trust the banksters one bit. In fact, my fear is that they are able to use their almost unlimited power and vast wealth to hinder all the progress that is taking place. The deal with Ripple might seem like a good thing but is it? The banksters only operate in their best interest which means the enslaving of everyone else. If there is something that threatens their power, they will eliminate that threat.
We all know the peril that decentralization means to the existing financial structure. The fact that the banksters are starting to embrace it means they clearly see the threat. That said, do they allow it to break down their gravy train. I do not believe so.
So how do I see it? I would not be surprised to see them not only embrace blockchain but promote it. The difference is that it will not decentralized but their own. They will develop a currency that go along with it and work to have the others either in their control (read they own the vast majority) or they have them outlawed by governments who will make it illegal for the average person to hold. Isnt this what happened with gold? Notice how little is in the hands of the average person these days.
Great question and something that all need to consider as the crypto world is invaded by Wall Street.
they could do what ever they want and in the end It will fail just like their current system. ppl dont what centralizaton of power period.
Thx for the link to the article. i must say this can't be a "good" sign for Ripple. All this tech is still so new....it's hard to count Ripple out just yet.
@katythompson,
XRP is not the only crypto which is based on bank transactions! "Stellar Lumens (XLM)" is also based on the same theory, but the most powerful and most legitimate one is XRP!
If we take a look at how XRP and XLM act in last couple of months I can assure you XLM is the younger brother of XRP! Both market movements are very similar in charts!
Anyway, I am a ripple lover! I mean I have a good store of XRP and wish it will rise up to 0.5 USD ;) I don't know whether it's happen or not, if it reach 1 USD, then it might make me as a millionaire :D
A lot of ICO, ITO will come and most of them will disappear into thin air! But sometimes few will survive!
Really appreciate your effort and thanks for sharing such useful information with us!
Cheers~
amigo #resteemia at your service
'Six of the world’s biggest banks have joined a project to create a new form of digital cash that they hope to launch next year for clearing and settling financial transactions over blockchain, the technology underpinning bitcoin.' mmm XRP gets a new rival. useful information @katythompson
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Ripple great cryptocurrencies. next power upto ripple. great post.100% like and resteem
so xrp was a bank initiative ??
Not its an initiative launched by a company called Ripple for the banking system to take cost out of foreign exchange transactions between banks. Ripple itself is a startup. There are some longer term use cases for xrp as ordinary currency.