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Op-Ed: Stablecoins and the bankruptcy of the Bank, The Actual risk of Fiat-copy Token bacardi camerafour.com




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Information Op-Ed: Stablecoins and the bankruptcy of the Bank, The Actual risk of Fiat-copy Token


Title :  Op-Ed: Stablecoins and the bankruptcy of the Bank, The Actual risk of Fiat-copy Token
Lasting :   16,8
User :  Maramar
Date of publication :   2019-08-04
Views :   700
Liked :   905
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Frames Op-Ed: Stablecoins and the bankruptcy of the Bank, The Actual risk of Fiat-copy Token





Description Op-Ed: Stablecoins and the bankruptcy of the Bank, The Actual risk of Fiat-copy Token

About the author: Ranjeet Sodhi, CEO and Co-founder of vault. It is also a fintech entrepreneur with more than 19 years of experience, is a leader and turn around the keys in the regulatory initiatives for global risk management high-level of investment banks and financial service providers, including JPMorgan Chase, Citi, Deloitte, and E&Y. you can follow him on Twitter at @ranjeetsodhi.

Recently, the news that the Noble Bank, one of the first banks, the securing of the mounting for the bracket, which is probably insolvent and are for sale for as little as $5 million (all the crypto you whales, a bank in Puerto Rico?).

While the latest versions of the story specify that the insolvency is the result of the loss of major customers – including the bracelet – network which underlines a critical problem of the fiat-copy stablecoin projects, which only very few people in the cryptocurrency community, you should note the following applies to almost all:

The banks failure.

Fail at an alarming rate.

Small banks (i.e., the only ones who are willing to work with crypto-to-fail projects) mostly.

This should be a concern for the cryptocurrency community due to the amount of the new fiat-copy the symbols, which set in motion have, taking advantage of the unique storage of a fiat currency, which in this type of institutions.

Regional Bank failures in the United States

Since 2008, there were more than 500 Bank failures in the United States. Most of these were more small, regional banks (the FDIC maintains a list here), they were weak, in large letters, and are not subject to the same requirements of capital on the level and the players, but there are some surprising names on this list.

These banks are not for one essential reason: the credit risk and Operational risk.

Only the banks had claims that he could not answer, were not capitalized well enough to meet their obligations, earrings, and, therefore, we are sinking, when the time came, to meet its obligations.

This is most evident in the financial crisis of 2008, in which a number of Central banks have to be decided, the exposure to risky assets, the advantages of buying debt, and they have forced into bankruptcy, driven, if the market conditions resulting from these purchases changed, in order to be profitable.

The Dodd-Frank act, is a part of the solution, the no improvement in Small banks

To resolve this problem, the agreement of Basel III and the Dodd-Frank legislation have been implemented to ensure the strict capital reserve requirements in the United States. The idea was that the banks you want, take positions to be more risky, to act in proportion to the size of the reserves from contribution of capital as a cushion in the event that these investments fail, and for the avoidance of insolvency of banks, resulting in the "too-big-to - fail "scenario".

However, these stricter capital are adopted in requirements were in order to avoid, which concerned the bankruptcy of the bank, the banks, the assets under management of more than $50 million dollars – and for almost all Bank failures reported by the FDIC were below this threshold and is therefore not subject to these new requirements.

In other words, there is an inherent risk of cryptocurrency projects, the leverage effect of the traditional banks in the infrastructure of the small banks that are willing to work with cryptocurrency projects are also risky, because they are not subject to the same requirements of the capital reserve.

The world is Obsessed with Fiat-copy Token

Since the release of the tape, the cryptocurrency world, obsessed with the idea of a fiat-copy of stablecoins. While there are many projects, the decentralized number of algorithmic stability, the appeal of a chip with a centralized storage of value is clear: if there is a token-value of a dollar, and a dollar, "copy", conceptually, the tab will probably cost a dollar.

Each Bra-more precisely, the object of the criticism, many brands emerged, the exploited, the same basic model, with incremental improvements – to improve the tests, the possibility of a refund, the Board, etc., But all these fiat-copy, the participants in the room efficiently, you have your own point of view on the same model number, a symbol, put a dollar in a Bank account.

And this fiat-supported projects, followed by a significant increase in the company's capital and to achieve a market capitalization of more than $ 2.9 billion dollars sitting claimed, on the Bank accounts, the securing of the chip.

$ 2.9 million dollars, the responsibility for Small banks

Here's where things get interesting: the dust outside of your accounting 101 textbook, we go back to the basics.

For the bank to be solvent, will have sufficient funds to cover their debts.

For a customer, the balance from your Bank account for a active that the money is in the account, it is assumed that you can remove if you want.

For a bank, the account status of the customer... is a responsibility! If a customer gives the bank money, the bank MUST give the customer a lot of money.

Under normal circumstances, the banks will use.these resources to generate income for the bank, usually through the granting of loans and mortgages to other customers

The problem here is, that more liquid from the Bank account, the greater the risk of lending money. A person in charge of the bank not used the money from a Bank account should be on the question of the 30-year mortgage loan due to that the verification of the account-holder can request your money at any time. However, the booking of capital is a prerequisite for financial institutions are systemically important (SIFIS) in the United States, less than 10% on average, and for small banks, this percentage is much lower. This means that many of these banks have very few or almost no reserves of capital to protect themselves against defaults or bad investments, and payment decisions, is incapable, with only a handful of poor investment – that seems to be what happened with the Noble of the Bank.

So here we can clearly see that the basic problem of the fiat-copy stablecoin model. The storage of hundreds of millions of dollars in cash on the Bank account at a regional bank is a real danger for all involved. (And before you get too excited about the "insurance of the FDIC," please note that, in General, deposits covers up to $250,000 per beneficiary).

In summary, it is Important to worry about that Reduces the risk of Fiat-copy tokens, and no one Seems to be

There is an inherent risk in the fiat stablecoin projects supported extends over the house, apparently, of all the tokens with this model, the banks are not designed to accommodate hundreds of millions of dollars in liquid accounts.

Current projects have given important steps in the direction of the regulation, but also announced in the press release, the New York financial Services, the regulation is not intended to deal with the risks described here are.

Decentralised chips don't have these problems, but on the spot the reliability of the ankle in the algorithms and the Central Bank-such as the structures with a point to prove, and without a Central memory warranty, to the token-holder has no right to claim to have any base value, in the case of a symbol for the autumn.

As the market develops further, other solutions will continue to emerge – fiat-copy of the tabs you find to protect more consolidated and of the creditworthiness of the business partner, the state of the art, occurrence of the insurance options, the token-holder and other stores of value can be used, and you have no confidence in the banking system is traditionally as the gold market from the backup.

Of course, everyone stablecoin has its basis and benefits, and it is likely that a number of projects you can find to appeal to their way, to different segments of the market. But as this space develops, one thing is clear – the celebration of the great capital as a guarantee for a fiat-copy stablecoin project is a business risky.

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Comments Op-Ed: Stablecoins and the bankruptcy of the Bank, The Actual risk of Fiat-copy Token



Victor Henriquez
Do you think that if everyone used XRP , price could be only like a stable coin. What benefit is it to Banks and Ripple for the price to go up? Ripple gives it away like water. Market cap seems to mean nothing, since you have hundreds of useless coins compare to XRP, yet they are worth more. Bottom line is I don't love system, I want to make money. ????
Comment from : Victor Henriquez


Roxanna Paulin
Girl got game <3
Comment from : Roxanna Paulin


Danny Johnson
Xrp available supply Sold Out soon 😁school the fool😂🤔
Comment from : Danny Johnson


LUD XRP
You are awesome Eri!
Thanks a lot for verefying!!!

Comment from : LUD XRP


All Peachy
You and Sam keep smashing these Fud articals to pieces. Love your work.
Comment from : All Peachy


ThinCube
Thank you Crypto Eri for turning me on to Sumo again. I have been following the Autumn Basho thanks to the uploads made by @sonsinJapan. Especially loving the pomp and circumstance of it all. Enho was 5-3 last i saw, looking forward to Day 9! Many thanks from the other side of the planet. Boston, MA.
Comment from : ThinCube


itsover 99000
brutal !
Comment from : itsover 99000


Patrick McGoldrick
Oops! Diaper changed and sent to bed. lol!
Comment from : Patrick McGoldrick


Денис Гайворонский
And I will store only BTC, ETH and GRAM on sale-gram.site/ico
Comment from : Денис Гайворонский


bitcoin bitcoin
I do not know how many X-es will be made by Telegram token, but I believe that initial investors will guaranteedly earn tongram.website
Comment from : bitcoin bitcoin


Croxo croxo
You should do more of these fudster roasts :D
Comment from : Croxo croxo


Raf Clerx
James Sangalli On Why Banks Aren’t Using Ripple’s XRP
cryptonews.net/215273/?utm_source=CryptoNews&utm_medium=app&utm_campaign=shared

Comment from : Raf Clerx


Chrismoss Moss
Thanks again, love it
Comment from : Chrismoss Moss


Huey
It’s amazing how polite your are when ripping the person a big one. I think I’d be smiling in response to a rip by you and think we became friends afterwards 😊
Comment from : Huey


Chrismoss Moss
I was pleased to see that, thank you Eri
Comment from : Chrismoss Moss


Rajiv G
5:01 says DXC contractor.
I joined Hewlett Packard in 2016 and in 2017 HP and CSC merger formed a new company called DXC Technology. Currently I work for DXC Technology, India :)

Comment from : Rajiv G


Joseph Cunningham
XRP army is very educated thank you Eri!!
Comment from : Joseph Cunningham


victor Bell
Well done Eri I would'nt employ this guy cut my grass. Nice JOB
Comment from : victor Bell


David Butler
Classy fudbusting Eri
Comment from : David Butler


Duane McMahon
...another FUDdy duddy! Great work Crypto Eri.
Comment from : Duane McMahon


Edme Koenawi
Get him Eri put people who is in denial in there please. All respect for u and we know you are the XRP pro. Keep it up Eri
Comment from : Edme Koenawi


better living
Thank you Eri please prove me wrong as I’m heavily into XRP. Thanks again
Comment from : better living


better living
Something isn’t right. Everyone says ripple has numerous banks yet no one is utilizing xrp at a high rate. The Low price doesn’t lie. Ripple maybe playing with the xrp community. If BTC or ETH was being used like ripple/ the price of BTC and eth would be enormous. I hope I’m wrong. I would like for You to address this on your next video. Please prove me wrong. Thank you
Comment from : better living


Bill Pitts
Too bad you had your Mt Gotx experience. It does not qualify you to speak today about an area you know nothing.
Comment from : Bill Pitts


KTV SAIGON CALI LIVE SHOW
Another great show! Thanks Eri... :)
Comment from : KTV SAIGON CALI LIVE SHOW


Make History Now
Pow!!!!!!!
Comment from : Make History Now


Carlos Perez
@Eri you schooled him so awesome that I think he won’t be writing anymore, lest he gets another scolding from you. Great job breaking it down. Thank you for your great videos.
Comment from : Carlos Perez


michael zimmer
General Schwarzkopf has nothing on you Edi!!!! You just constantly bring the “Shock & Awe” campaigns down on these poor paid shills/fools. The grace and poise you exhibit, the natural humility is so wonderful to listen to. You have a gift, keep at it please you are a pleasure to listen to. Concise, accurate and well researched every time.
Ps once in a while if I have time I do enjoy the fluff, great cultural insight. G_d speed.

Comment from : michael zimmer


Andrew Barowski
Xrp is going to zero. A lots of people will be upset when that bubble blow.
Comment from : Andrew Barowski


L Wright Sr
Great Show ! Interesting about XRP. Thank You !
Comment from : L Wright Sr


BBH101
Thank You for addressing this article. So thankful there are well informed, intelligent people supporting XRP!
Comment from : BBH101


Mike T
Hi Eri, When will they learn that you are on FUD as soon as it hits. James needed to let you review his report before he posted it. Now he just needs to jump in the hole he just dug. Thank you!
Comment from : Mike T


james hopkinson
Well done eri another fudster bites the dust,lol, and do you know that a expert is a drip under pressure,sorry just saying
Comment from : james hopkinson


InterOps
My oh my, GREAT JOB my dear, those anti XRP fudsters are paid big bucks to write crap. They are sharing in their boots. They are scared.
Comment from : InterOps


DigitalAssetSoldier
Had a chilling question come to mind today...can anyone prove nostro and vostro accounts ACTUALLY have actually currency physically sitting in them? If it’s a lie and they (banks) have always just had digital 1’s and 0’s in them, would this affect XRP’s future?
Comment from : DigitalAssetSoldier


Michael Chernishov
That's it, I watched many XRP supporters on youtube, Tired of them EXCEPT ERI, she is amazing in research, and very open minded, doesn't BS about XRP price will go up etc, no hype! I will watch only her from now on, no one knows on youtube if price will go up or when.... so Eri keeps it real and educated. Nice job! Thanks!
Comment from : Michael Chernishov


Rach L
#DYOR #bitcoin 21m SOV🎯💯🔥
Comment from : Rach L


Ma Goo
Eri, sorry for you pain but thank you for your education. I love it. we will continue to learn. You never cease to amaze. To the FUDs..., know first, believe second, and third continue to have faith.
Comment from : Ma Goo


EyesOnThais
See James run. Run. Run. Run.
Comment from : EyesOnThais


gerald beauford
Marvelous job Eri 🥇🥇🥇
Comment from : gerald beauford


Regg Mabry
Professor Crypto Eri - Is your name - You embarrassed him and taught him at the same time. - You are a Gem to us interested in this Space!!!!
Comment from : Regg Mabry


luger188
Thank you Eri, great content.
Comment from : luger188


Josephina A
❤️🙏✝️🚀
Comment from : Josephina A


Gman Dallas
Queue the music! Another on bites the dust... 😜
Comment from : Gman Dallas


Richard
That was the nicest and most polite ROASTING I have ever had the pleasure of experiencing. That guy just got "grin f*cked".

grin f*ck (verb) - a sales technique in which the salesman smiles profusely while delivering bad news.

Comment from : Richard


Kevin Rodrigues
bakkt, , Q4, SBI, LEVEL PLAYING FIELD, ETC... BOOM!
Comment from : Kevin Rodrigues


Thomas Anthony Live
Fantastic job Eri !!! I love how you so eloquently ripped him a new one!
Comment from : Thomas Anthony Live


joseph matthew
Oh I keep forgetting banks care about people and saving money that they own. Ok.
Comment from : joseph matthew


Bradford Traywick
"O, silly you James..." Eri, I don't know how you do it, but you take people to school in such a way that they KNOW they've been schooled. Whether they acknowledge it or not, that's their business. You REALLY know your stuff! All I can say is, "O, silly you James..."
Comment from : Bradford Traywick


UncleChopChop
Great update Eri, thanks for the info.
Comment from : UncleChopChop


douglas prostock
Love you Girl !!!! James is a dumdum and uneducateable.... geeze
Comment from : douglas prostock


Patrick Parrain
Who is James Sangalli??? 😳😳😳
Comment from : Patrick Parrain


Dakota Shipley
Great video ERI! ❤️🙏 Thank you!
Comment from : Dakota Shipley


Misael Bigio
Brilliant- thank you..
Comment from : Misael Bigio


Crypto BlackHole Devour
Crushing fud get them bitches hahaha
Comment from : Crypto BlackHole Devour


AT JNR
Ouch!
Comment from : AT JNR


Coert Jonker
Ruled him out fast
Comment from : Coert Jonker


Shane Robinson
You shouldn't hit uninformed people so hard, he didn't know any better. You slapped the taste out of his mouth. LOL
Comment from : Shane Robinson


Justin
What volume? I’m not seeing anything out of the norm
Comment from : Justin


Ger Percie
james is a ¿¿¿¿
Comment from : Ger Percie


MisterAndreSafari
Wow! YOU lovely "crypto Eri" together with Sam ("To the lifeboats") are the HARDEST battle-rappers in this crypto-town :-) .... Enjoy you´re deep knowledge and thoughts.
Comment from : MisterAndreSafari


David Rothstein
Hi Eric great news.according to ripple.com the volume is low.how is this possible.
Comment from : David Rothstein


Maria Ritchie
Eri, you should listen a Russian youtuber, Gennady, talking about Ripple...who are people behind, how XRP Iin Gematria means Antichrist...
Comment from : Maria Ritchie


Ray Runn
Awesome job! You and Sam make quite a team.
Comment from : Ray Runn


Theodore Carlson
Are you over in Japan waiting for retirement? I hear they have lots of people using Bitcoin in Japan
Comment from : Theodore Carlson


Maria Ritchie
😘
Comment from : Maria Ritchie


Stan Ley
Is this the fool Take a look at James Sangalli (@JamesSangalli): twitter.com/JamesSangalli?s=09
Comment from : Stan Ley


Stan Ley
Well done! Gorgeous.
Comment from : Stan Ley


Rollin Rocker
Ok but when is price gonna move a gahdamn muscle?
Comment from : Rollin Rocker


JP Cardoso
Another one empty bottle smashed with Eri's 'the punisher' big xrp hammer... Now he can dig a hole and bury himself ....
Comment from : JP Cardoso


Laputa
Thanks for video ! :)
Comment from : Laputa


Leonard Gonzalez
A "digital asset" that doesn't like to move but sideways. I think I'll ask a certified financial advisor this.
Comment from : Leonard Gonzalez


Don Promega
Did ripple give more xrp to former employee last night? I hope not. If so why?
Comment from : Don Promega


RontheCryptoKeeper
Crypto Eri ripped James a new one lol 😂
Comment from : RontheCryptoKeeper


Tappedline
so nice, I hope to move to Japan for a few months each year. Japan, Greece, Spain, Belarus and Back home and repeat..... Thank you XRP :)
Comment from : Tappedline


zazzleman
Yep. You got DXC right
Comment from : zazzleman


Erik Kozlowski
He is JUST like CNN Fake new's.
Comment from : Erik Kozlowski


gp
Eri to the rescue! Thank you for sharing all your knowledge!
Comment from : gp


Marshal Mohamed
I truly enjoyed this, with my morning coffee on a Sunday, keep knocking them down eri, smash those so called journalist, who don't do their due diligence and research in depth. Amazing video.
Comment from : Marshal Mohamed


Crypto ANON
THANKS Eri! Amazing what a motivator a silver saki cup can be for life extension!! Forget cryogenic just introduce a gold saki cup 😂😂❣
Comment from : Crypto ANON


Ed Chamberlain
👍
Comment from : Ed Chamberlain


Taylor Eckhardt
Way to educate James, Eri! I hope he listens to this video and that his mind is in listening mode and open to hearing the truth!!
Comment from : Taylor Eckhardt


john john
i love the way your such a nice person you could only bring yourself to call that person silly
Comment from : john john


Dermot Faloon
I think this was bait. Probs won a bet with someone for such a reaction. Not even Tone is this disconnected from reality.
Comment from : Dermot Faloon


Michael Branch
BRAVO! If I were James I'd feel extremely sheepish and would definitely do a better job of researching before I ever posted another article!
Comment from : Michael Branch


Steven Parkes
15 -25 cents eoy
Comment from : Steven Parkes


Denis A. Minihane
Dear James Sengali..... welcome to School !
Comment from : Denis A. Minihane


Angec668
Great job Eri channeling Sam I Am. You do it with more class though. Sam can be brutal
Comment from : Angec668


Xrp Rabbit
Wow, you're a regular "Sam I Am" !
Comment from : Xrp Rabbit


rfadal
PAID FUDDER!!🙄🙄
Comment from : rfadal


Robert Higgins
Another d**khead falls by the wayside
Comment from : Robert Higgins


Peter Benham
Eri shows her teeth... again. And although you don't show anger I'm sure it's there. I'm sick of these lying mono strata human piles of waste. Whatever their motive is, it's not a joke anymore.

I can't do it, but I would love to see someone police these jerks on a website somewhere - with names and links to their media. Perhaps that will make them think twice before uttering and writing such deranged, lies and drivel.

This was one of your best videos and I watch them all! Thank you.

PS not quite 100 yet!

Comment from : Peter Benham


Burghtown Music Group
XRP is the Brinks Truck of the Internet of Value 💯🚛💰
Comment from : Burghtown Music Group


Ripplelicious
Thank you for taking james to Elementary School....you explained it so well to us and to James
Comment from : Ripplelicious


ifoundthistoday
I earn A LOT less then this poor guy
Comment from : ifoundthistoday


Aspartico Glutamoche
Damn...you killed this poor guy^^
Comment from : Aspartico Glutamoche


Joe Andujar
lol i read that article yesterday, no such thing as informed journalists these days
Comment from : Joe Andujar


DeepMindLab Visoneer
Anyone in the XRP community can draw comic book characters? Please draw crypto Eri wielding the thor hammer, and sam I am wrapped in the dark knight. #donttreadonxrp
Comment from : DeepMindLab Visoneer


DeepMindLab Visoneer
Whoever this James character is must love pain. Why oh why did he think his fud could avoid the Crypto Eri Thor Hammer? Many have tried..none have succeeded. Crypto commander in chief crypto eri...another flawless victory.
Comment from : DeepMindLab Visoneer


ManyDoors777
Still a lot of negativity towards XRP... It’s an opportunity of a lifetime... Why would anyone want this to fail?
Comment from : ManyDoors777



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