Ripple update: ELI5 Xrapid & Liquidity
Here is the scenario as I understand (and i’m under no illusion that i’m right, just misunderstanding)
​
Scenario: Bank A transfer 1 billion to bank B
1) Bank A buy 1 billion XRP via an Xrapid ready exchange.
2) Xrapid instantly transfers it to bank B
3) Bank B sell their XRP for fiat, hence bank B get their cash
​
Questions:
1) For bank A the chosen exchange has to have 1 billion worth of XRP available – probably fine, they can probably purchase on demand
2) When bank B sell, some exchange is left with 1 billion (worth of) XRP that will take them forever to sell, that is a lot of stock! They also have to have 1 billion in cash ready to supply.
​
Where am I misunderstanding?
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
Author: Lukeism
Score: 5
Don’t forget to share the post if you love it !
