Showing posts from March, 2019

A Fine Example of Crypto Ignorance

The video blogger Crypto Eri (@sentosumosaba) thinks she has evidence that the American Bankers' Association (ABA) wants the Federal Reserve to adopt Ripple/XRP as its cross-border settlement system. She has found a letter from the ABA which makes three requests to facilitate faster interbank settlement:
A liquidity management toolInteroperabilityAccess for chartered financial institutions Hey hey everybody, this looks just like Ripple's bag, doesn't it? "You are going to see how perfectly matched XRP is to meet their request," she says.

I've tracked down the ABA's letter to which she refers. It responds to a Federal Reserve request for comment on proposals for actions to support interbank settlement of Faster Payments. Faster Payments are domestic online and automated payments, not cross-border payments in foreign currencies. A bridging currency such as XRP is completely unnecessary for domestic payments. Indeed, it adds complexity and FX risk. I fear Cr…