Urgent: Does BIS Launch mBridge to Oust XRP ?

Summary

The video discusses 'mBridge,' a project by the Bank for International Settlements, aiming to create a multi-central bank digital currency platform for instant cross-border payments using distributed ledger technology. The presenter clarifies misconceptions about mBridge replacing XRP, explaining that it serves as a regulatory-compliant bridge for various payment systems, including but not limited to XRP. The video also touches on 'Icebreaker,' a smart contract for less liquid currencies, and emphasizes the relevance of Quant amidst these developments.

Takeaways

• 😀 The video discusses 'mBridge', a project by the Bank of International Settlements (BIS), which aims to facilitate instant cross-border payments and settlements using a multi-central bank digital currency platform.
• 🔍 mBridge has reached the Minimum Viable Product (MVP) stage and is inviting further international participation to explore its potential in the financial ecosystem.
• 🌐 The project is built on Distributed Ledger Technology (DLT) and aims to be interoperable with various systems through APIs based on the global ISO 22 messaging standard.
• 🤔 Contrary to initial impressions, mBridge is not intended to replace XRP but rather to provide a regulatory framework for cross-border transactions, including those that might use XRP.
• 💼 mBridge is designed to offer regulatory clarity and governance, ensuring compliance with different countries' regulations for international payments.
• 🏦 The project is a collaborative effort involving BIS Innovation Hub, the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People's Bank of China, and the Hong Kong Monetary Authority.
• 📈 mBridge is intended to work with any system, suggesting that it complements existing technologies like XRP, rather than competing with them.
• 🧩 The video mentions 'Icebreaker', a smart contract system within mBridge designed for countries with currencies that have low liquidity, facilitating easier conversions.
• 🔒 The creation of mBridge is partly a response to concerns over the weaponization of the SWIFT system by the United States, aiming to provide an alternative for countries to safeguard their financial transactions.
• 📊 The project is also relevant to Quant, another technology that aims to provide interoperability between different blockchain systems, indicating a broader trend towards financial system integration.
• 👥 The video encourages viewers to form their own opinions, suggesting that there is more to learn and discuss about mBridge, XRP, and their roles in the evolving financial landscape.

Q & A

What is the main topic of the video?

The main topic of the video is the introduction and explanation of mBridge, a multi-central bank digital currency platform developed by the Bank for International Settlements (BIS).

What is mBridge and what does it aim to achieve?

mBridge is a project by the BIS that aims to explore a multi-central bank digital currency platform shared among participating central banks and commercial banks, built on distributed ledger technology (DLT) to enable instant cross-border payments and settlements.

Why might mBridge initially seem like it could replace XRP?

mBridge might initially seem like it could replace XRP because it also facilitates cross-border payments and settlements, which is a function XRP is known for. However, the video explains that mBridge is not meant to replace XRP but rather to provide a regulatory framework for various digital currencies.

What is the role of APIs in the mBridge project?

APIs in the mBridge project support interoperability with participants' own systems, allowing the platform to connect with different central bank digital currencies (CBDCs) and facilitate seamless transactions.

How does mBridge address regulatory compliance for cross-border transactions?

mBridge provides a system of regulatory channels that ensures compliance with the different regulatory requirements of participating countries, wrapping up payments in a way that meets all necessary regulatory standards.

What is the 'Icebreaker' initiative mentioned in the video?

Icebreaker is an initiative by the BIS for countries with currencies that have low liquidity. It uses smart contracts to convert these currencies into more liquid ones, facilitating easier cross-border transactions.

How does the video script differentiate mBridge from Quant?

The script suggests that while mBridge and Quant both aim to improve cross-border transactions, mBridge focuses on providing a regulatory framework and is specifically designed for smaller transactions in countries with less liquidity, whereas Quant is positioned as more relevant for larger transactions.

What is the significance of the ISO 22 messaging standard in mBridge?

The ISO 22 messaging standard is used in mBridge to standardize the APIs, ensuring that the platform can integrate with various systems and facilitate smooth communication between different financial entities.

What is the video creator's stance on the relationship between mBridge and XRP?

The video creator believes that mBridge is not intended to replace XRP. Instead, it is a separate initiative that may complement XRP by offering a regulatory framework for cross-border transactions.

Why was mBridge developed according to the video?

mBridge was developed as a response to the perceived weaponization of the SWIFT system by the United States, aiming to provide a governance framework that safeguards countries from such influences and allows them to conduct cross-border transactions independently.

How does the video script suggest the future of digital currencies and cross-border transactions?

The script suggests a future where multiple systems coexist, with countries and financial entities choosing the digital currency or platform that best suits their needs for cross-border transactions, whether it be XRP, mBridge, or another system.

Outlines

00:00

🌐 Introduction to mBridge and its Role in Digital Currency

The video script introduces mBridge, a multi-central bank digital currency platform developed by the Bank for International Settlements (BIS). The platform aims to enable instant cross-border payments and settlements using distributed ledger technology (DLT). It is designed to be interoperable with various systems through APIs, supporting different central bank digital currencies (CBDCs). The script clarifies that mBridge is not a replacement for XRP but rather a complementary system that streamlines regulatory compliance for international transactions. The video also promotes the use of a self-custody wallet for secure digital asset management.

05:00

🔗 mBridge's Interoperability and its Impact on International Payments

This paragraph delves into the technical aspects of mBridge's interoperability, emphasizing its ability to connect with external systems using global ISO 22 messaging standards. The script explains that mBridge acts as a bridge for various payment systems, including those that may use XRP for transactions. It also introduces the concept of 'Icebreaker,' a smart contract designed to facilitate transactions in currencies with low liquidity, similar to the role XRP plays in the market. The paragraph highlights the flexibility of mBridge to adapt to different systems and the potential for it to coexist with existing solutions like XRP.

10:02

🛡️ mBridge as a Response to US Influence and the Relevance of Quant

The final paragraph discusses the geopolitical motivations behind mBridge, suggesting that it was created as a response to the perceived weaponization of the SWIFT system by the United States. The script implies that mBridge is a means to safeguard against such influence and to provide a governance structure that ensures regulatory compliance across different countries. It also touches on the relevance of Quant in this context, hinting at a video by Crypto Maximus that explores the significance of Quant in relation to mBridge. The video aims to dispel fears that mBridge is a direct competitor to XRP and to emphasize the collaborative potential of these technologies.

Keywords

💡mBridge

mBridge is a multi-central bank digital currency platform being developed by the Bank for International Settlements (BIS). It aims to enable instant cross-border payments and settlements using distributed ledger technology (DLT). The project is designed to be interoperable with various systems, which means it can work with different central bank digital currencies (CBDCs). In the video, mBridge is presented as a potential solution for regulatory compliance and governance in cross-border transactions, distinct from XRP but complementary to it.

💡Bank of International Settlements (BIS)

The Bank of International Settlements is an international financial institution that serves central banks. In the context of the video, BIS is the driving force behind the mBridge project, which is intended to facilitate efficient and compliant cross-border transactions. The script mentions that the project has reached the minimum viable product (MVP) stage and is inviting further international participation.

💡XRP

XRP is a digital asset native to the XRP Ledger, which is used for making fast and cost-effective international payments. The video script discusses the misconception that mBridge might replace XRP, but clarifies that mBridge is not a replacement but rather a complementary system that could potentially work with XRP for certain transactions.

💡Interoperability

Interoperability in the script refers to the ability of mBridge to connect and work with external systems, including different CBDCs. It is supported by APIs based on the global ISO 22 messaging standard, which allows for seamless integration with a variety of systems. The concept is crucial for mBridge's goal of facilitating cross-border transactions across different currencies and systems.

💡APIs

APIs, or Application Programming Interfaces, are sets of rules and protocols that allow different software applications to communicate with each other. In the context of mBridge, APIs are used to connect the platform with participants' own systems, enabling the integration of various CBDCs and ensuring compatibility.

💡Regulatory Channels

The term 'regulatory channels' in the script refers to the pathways within mBridge that ensure compliance with the regulatory requirements of different countries. This is a key feature of mBridge, as it aims to streamline cross-border transactions by addressing regulatory concerns upfront, thus reducing the need for individual regulatory checks on each transaction.

💡ICE Breaker

ICE Breaker is a smart contract system mentioned in the script, designed to facilitate transactions involving currencies with low liquidity, such as those from smaller countries. It works by converting these currencies into more liquid ones, thus making transactions easier. The script suggests that ICE Breaker is part of the BIS's solution to enhance cross-border payments, potentially alongside systems like XRP.

💡Quant

Quant is a term used in the script to refer to a project or technology that is also focused on interoperability in the financial system. While not fully explained in the script, Quant is presented as relevant and not replaced by mBridge, indicating that there are multiple initiatives aiming to improve cross-border transactions.

💡SWIFT

SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is a global messaging network that financial institutions use to securely transmit information and instructions. The script mentions the weaponization of the SWIFT system by the United States, which has led to the development of alternatives like mBridge to safeguard against such influence.

💡CBDCs

CBDCs, or Central Bank Digital Currencies, are digital forms of a country's official currency, issued and regulated by its central bank. In the script, CBDCs are integral to the mBridge project, as the platform is designed to work with various CBDCs to enable cross-border transactions.

💡Governance

Governance in the context of the video refers to the rules, policies, and processes that ensure the proper functioning and oversight of a system, such as mBridge. It is highlighted as a key aspect of the project, emphasizing the need for clear regulatory frameworks to support cross-border transactions.

Highlights

Introduction to mBridge, a project by the Bank for International Settlements (BIS).

mBridge is not intended to replace XRP but is a separate initiative.

The project aims to create a multi-central bank digital currency platform using Distributed Ledger Technology (DLT) for instant cross-border payments and settlements.

mBridge is a collaborative effort involving BIS Innovation Hub, the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People's Bank of China, and the Hong Kong Monetary Authority.

The platform is designed for interoperability with participants' own systems using APIs based on the global ISO 22 messaging standard.

mBridge is intended to provide regulatory clarity and governance for cross-border payments, regardless of the digital currency used.

The project is in its Minimum Viable Product (MVP) stage and invites further international participation.

mBridge is a bridge for various systems, similar to Quant, but with a focus on regulatory compliance.

The platform is designed to handle payments with multiple systems, including those that may use XRP.

Explanation of how mBridge differs from XRP and its intended use for regulatory compliance in cross-border transactions.

Introduction of 'Icebreaker', a smart contract system for countries with low-liquidity currencies to facilitate easier exchange.

Icebreaker's role in converting currencies that are not easily exchangeable due to low liquidity.

Comparison between mBridge, Icebreaker, and XRP, highlighting their distinct purposes and functionalities.

Discussion on the relevance of Quant in the context of mBridge and the broader implications for digital currency systems.

The geopolitical motivations behind mBridge, including concerns about the weaponization of the SWIFT system by the United States.

How mBridge is intended to safeguard against the influence of the United States over international financial systems.

The potential impact of mBridge on the use of the US dollar and the move towards digital currencies by various countries.

Transcripts

hey everybody will fix here got another

video for you today today I want to

cover the uh mbridge

a I don't know if you want to call it a

product but something that the bank of

international settlements have made if

you haven't heard about mbridge then

you're going to like this because you'll

be armed before you hear about it

because when you hear about it if you

don't have a a good background with

what's going on with it it can sound

like something that will replace xrp it

sounds like man they just they just

bypassed xrp but that is not the case

and I'm going to show you in this video

I'm going to go through I'm going to

streamline this because I got deep in

the sauce today spent hours studying

this watching everything on it to try

to uh wrap my mind around it in a good

way so that I could um explain it in

terms that that I like to explain things

in so I think I got it so first let's

talk about what it is we're going to

talk about mbridge then we're going to

talk about um ice breakers then we're

going to talk about xrp and I'm going to

show you how um these will all Mash

together in today's video so we'll go

ahead and get started here is the

commercial for the day hey get yourself

a decent wallet self custody is the way

to go use my link in the description you

get a discount and that's all I really

want to say about that but you do need

to get you one um uh some form of a

wallet I prefer the decent wallet

because I've had a whole bunch of

wallets I don't know I can't even tell

you how many I can't count them I can

count them on two hands I think but I've

tried a lot of them I do prefer the

decent all right moving right

along okay we're on the bank of

international settlements website and

they're talking about here on this

article project mbridge reaches minimum

viable product stage and invites further

International

participation all right so quickly I

want to show you where a lot of the uh

scary information comes from when you

don't look into it deep enough on the

surface this looks pretty scary look at

it project inridge continues its

development and has reached the final

viable product MVP stage while

broadening its International reach the

project aims to explore a multi- central

bank digital currency platform shared

among participating central banks and

Commercial Banks built on distributed

Ledger technology DLT to enable instant

crossborder payments and

settlements project embridge is a result

of extensive collabor a during 2021

being the bis Innovation Hub the bank of

Thailand and the Central Bank of the

United Arab emirats the digital currency

Institute of the People's Bank of China

and Hong Kong monetary Authority the Sai

Central Bank excuse me is going is

joining mbridge as a full participant

there are also now more than 26

observing members doesn't that sound

spooky on the on the surface on the

surface doesn't that look like wow there

goes xrp isn't that what xrp was going

to do and I can see why you would think

that but let's look a little deeper okay

look

interoperability how does the project

inridge platform connect to external

systems so how you going to plug this

thing in so you got this thing you can

use your bank your country or whatever

how you going to use it well

interoperability means uh what it it

means exactly what it means right uh all

kinds of different kind of like what

Quant does this doesn't replace Quant

either that's an important thing another

video interoperability with participants

own systems their own systems is

supported by apis based on global ISO 22

messaging standard this is set up for

whatever system your cbdc is this is the

key

point if x X RP so whoever does your

cbdc we know xrp is out there doing

whole countries right we know that

whether there's six or eight countries

being done and they're talking with 30

so these entire nations all of their

money is going to be done with the xrp

Ledger with with ripple and and the

native coin xrp for those of you that

like to know that I get those mixed up

hey track for me let me know if I get

them screwed up I don't have to ask you

I know you will but and it's all good

but I'll probably get those mixed up

okay but my point here is that that it's

the other it's for all systems to use it

so what is the points well these apis

and apis is just basically you can plug

the back of your computer in and you're

hooked up to their main computer system

so you just plug right in that's

basically API extreme basic uh

explanation but but there you go so

whatever system that you have this is

buil to work with it so say you have um

your cbdc is made by Ripple or you're

wanting to send an an N xrp payment so

what is the point of this well if you're

wanting to send now this we're FASTT

tracking this particular explanation on

this but I just wanted to give you this

information just to Stave off any thud

that you may get from people who haven't

looked deep into this and and wrapped

their head around it so so here's

basically what's happening as I

understand it after hours and hours of

reading so some of y'all may know more

about it let me know but um I I'm I'm

pretty right on this particular point

they they will use xrp not everybody but

those that choose xrp will use xrp can

you use xrp payments with bis with the

cross border payments absolutely so what

is the point well the point of this

particular block chain

idea that they're talking about here

with mbridge first of all it's in the

name it's a bridge it's a bridge for all

kinds of people working sort of like how

you would think Quant to be um except

what they're doing is creating a system

of uh

regulatory um channels that once you

send the payment through there the uh it

it's uh wrapped up with all the

regulatory problems solved with all the

compliance with all the compliance that

needs to be for all of the different

countries that problem's solved by

sticking it in there and shooting it

through their little system you're

you're covered totally with

regulatory deals you don't have to so so

each thing doesn't have to go through a

regulatory um um you know process where

every little coin has to be be regulator

uh I don't know if that's even a word

but approved you know you can put it in

this so then the payment is now wrapped

in this regulatory deal shot through to

wherever it goes and it's considered

good um because they wanted to cover all

of the bases of sending payments with

multiple systems and that's what this is

for this is a system for API and

Regulatory Clarity and governance for

people to use whatever system they want

to to send payments so that is a that is

probably the quickest way I could bring

this you know here we are at 11 12

minutes getting into 15 minutes but I

wanted to at least give that much of the

information out there so that you didn't

get some kind of Runaway Runaway trained

thought and fear of fud that oh my God

they've just replaced xrp with their own

system that's not what happen that's not

what they're looking to do um I have

another uh just another clue to prove

that but when you read through that and

you and you look at each word and you

see where they're plugging you in and

saying whatever system you use and blah

blah blah blah blah this isn't an

assistant to whatever you're using so

it's still the same thing people will

pick and choose some may use xlm some

may use xrp some may use whatever

they're going to use to do their

International payments the bis has

offered this for uh basically it started

off for small countries they also have

set up uh a thing called ice breaker

which is uh for some of the northern

countries you know Iceland I think and

the Netherlands and several other

countries why they call it Icebreaker

that have currencies that have a um a

low amount of liquidity because there's

not a high need for it and what

Icebreaker does is similar to what xrp

does now xrp will do the same thing so

if they decide to use xrp they won't

need Icebreaker but what Icebreaker does

is it's a smart contract that takes your

currency that isn't very exchangeable

because there's not a lot of liquidity

maybe it's a small country nobody wants

that particular coin that much what they

do is find the the smart contract in ice

breakers finds a coin that it can

translate it into and out of and then

does that for them to give it to the

bank or the person that needs to receive

it so it does the conversion process on

on the hard to-do cases this is

something also xrp can do but they

they've kind of devised a smaller system

is what it appears to me to condense all

of that activity into something small

because it won't be giant transactions

and instead of xrp you know is going to

be doing big stuff you know the the

mainline stuff this will concentrate it

all and put it where there's more

liquidity if everybody uses the same

little small system and that's the bank

of international set settlements

solution

now there's a another aspect of this and

that is concerning Quant so I'm at the

end of this particular video I know I

didn't do an exhaustive study and a

great job and this is just kind of just

covering the idea very basically that

that was the point of today's video

trying to keep them under an hour I

don't like the big long videos because

it you know that they don't get a lot of

attention and so and then people usually

click out before they even get to this

point there's many people that already

clicked out of this video and they

didn't even get to the conclusion you

can tell in the comments anyway I'm

putting a video up here by my buddy

crypto Maximus um and it's uh going over

Quant how extremely relevant Quant is

even with the inridge and all that how

that how that it's um mixed in with it

and there's even a lot of people saying

that this inridge is basically xrp I

wouldn't go that far um but it's openly

stated that the reason this is being

done is because of the weaponization of

the United States I mean they just come

out and say that out loud these

countries are upset that uh the United

States had influence influence over the

Swift system and were cutting people off

and so this is to safeguard these

countries they're creating the bis has

created this system for a governance

thing to keep the United States from

weaponizing this stuff that's literally

why it was made so when they're shooting

the money through there see it's going

to meet a lot of obligations you so so

you see the point is to keep the US out

of it and uh many of these people are

dropping many of these countries are

dropping the dollar because of that

stuff anyway I'm I'm putting that video

up for um for Quant and how Quant is

still still super relevant uh me and

crypto Maximus talked today about it and

uh he doesn't know I'm putting this

video up but I want you to see it it's

freaking awesome that's all I got for

you today please like And subscribe if

you like this content we may talk about

more of this in the future tell me your

thought thoughts in the comments I'll

talk to you later we'll see you next

video