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This is my Ripple conspiracy theory and their big connections with central banks and the IMF.
I’m just going to be blunt. Maybe I’m right.. maybe I’m wrong.. but I don’t believe the largest banks like Citi really likes Ripple that much, along with XRP..
This is my Ripple conspiracy theory and their big connections with central banks and the IMF.
I’m just going to be blunt. Maybe I’m right.. maybe I’m wrong.. but I don’t believe the largest banks like Citi really likes Ripple that much, along with XRP..
2/
Reason I’m saying this is firstly because Asheesh Birla has said Citi told them that they are their enemy on a meeting.
Why I think this is so? Ripple along with XRP brings disruption... the flow of funds won’t be controlled by the largest banks with Ripplenet
Reason I’m saying this is firstly because Asheesh Birla has said Citi told them that they are their enemy on a meeting.
Why I think this is so? Ripple along with XRP brings disruption... the flow of funds won’t be controlled by the largest banks with Ripplenet
3/
and settlement through XRP. These giant banks take out large fees for smaller banks to hold nostro for them.
A bank like Citi can then control the flow of funds and make money doing so. Control as well as fees. Very high barriers of entry for these nostro holding
and settlement through XRP. These giant banks take out large fees for smaller banks to hold nostro for them.
A bank like Citi can then control the flow of funds and make money doing so. Control as well as fees. Very high barriers of entry for these nostro holding
4/
banks. Through On-Demand liquidity you would massively lower the barriers of entry for new money transfer firms to enter the market. It will be much easier to open up in new markets, since you don’t need the same bilateral relationships as today through Ripplenet.
banks. Through On-Demand liquidity you would massively lower the barriers of entry for new money transfer firms to enter the market. It will be much easier to open up in new markets, since you don’t need the same bilateral relationships as today through Ripplenet.
5/
More companies means higher competition, which benefits the consumer through lower prices and better service.
But it also means a loss of control from banks like Citi. They would thus likely not want this to happen.
More companies means higher competition, which benefits the consumer through lower prices and better service.
But it also means a loss of control from banks like Citi. They would thus likely not want this to happen.
6/
I’m sure they don’t really care about remittance since the sums are tiny in comparison to what banks send.
But what happens when small and medium sized banks starts settling in XRP? Who will they extract fees from in nostro?
I’m sure they don’t really care about remittance since the sums are tiny in comparison to what banks send.
But what happens when small and medium sized banks starts settling in XRP? Who will they extract fees from in nostro?
7/
Also, sure there would be cost savings associated with settling with ODL for the megabanks as well. But two factors I don’t know... how much are the nostro fees they charge? And how much will the profit margins get squeezed from the new entrants into the market?
Also, sure there would be cost savings associated with settling with ODL for the megabanks as well. But two factors I don’t know... how much are the nostro fees they charge? And how much will the profit margins get squeezed from the new entrants into the market?
8/
Higher competition from much lower barriers of entry will lead to profit margins getting lower in sending money.
Also, the large scale disruption is likely something they see as a threat.
This is why I see this as very likely that thelargest banks would fight
Higher competition from much lower barriers of entry will lead to profit margins getting lower in sending money.
Also, the large scale disruption is likely something they see as a threat.
This is why I see this as very likely that thelargest banks would fight
9/
this disruption.
Now, Ripple is connected to the IMF, central banks, BIS etc. I believe these entities are very aware of all of this. It would make sense to me if they would try to help usher in this change.
this disruption.
Now, Ripple is connected to the IMF, central banks, BIS etc. I believe these entities are very aware of all of this. It would make sense to me if they would try to help usher in this change.
10/
To me these entities would likely understand the benefits to the economy at large by removing the friction in sending money and to slowly remove the nostro vostro system of today.
They would likely understand that the megabanks would fight this.
To me these entities would likely understand the benefits to the economy at large by removing the friction in sending money and to slowly remove the nostro vostro system of today.
They would likely understand that the megabanks would fight this.
11/
But initiatives such as open banking and Basel III proves to me that banks like Citi does not rule the world.
These are my beliefs in what is going on.
But initiatives such as open banking and Basel III proves to me that banks like Citi does not rule the world.
These are my beliefs in what is going on.
