/biz/ - Business & Finance

I had a thought about the money in the Nostro Vostro accounts held around the world. You can see an analogy with a poker game. The gamblers have to have a stake or an ante to sit and play at the table. They cant just come and play with no money. The first thing they do is put money into the pool. Every bank for a country is like a player in the game and when they sit at the table they have to put money into the pool. Together around the world we have accounts that make up a pool of 30 trillion that is used for liquidity. And they have Swift to take care of the payment side. But if we switch to Ripple for the messages and XRP for settlement then the money in the Nostro Accounts has to go into XRP to be its liquidity source for the pool. Because each of the players in the game has to have a stake or ante. They cant just take that Nostro Money and walk away with it or else they wont be playing in the game.