Hi everyone my name is Kirsten I am currently in the academy. Just wondering if anyone else has been reading up on the new system SOFR they will be replacing the USD LIBOR system January 25 2021 when the Libor contract ends?! From what I have read I am coming to the conclusion that ripple network may be part of this I could be wrong though. Do you think the financial system could go offline for a few days or even a couple of weeks? I understand the transition will take about a year but what about when the Libor contract expires in January 2021.They did a 70 trillion dollar test this fall but i can’t find results or further information on what happened ugh… Just curious if anyone else is researching what you think this could be?! Does anyone else think this could be the next part of mass adoption? Let me know your thoughts! Sorry i know this doesnt have to do with the academy hope its ok
the central banks try to keep the interest rates low by market manipulation. last year September 2019 the fed lost control (interest rate shot up to 10%) and that whole repo market QE started. The interest rates should be a lot higher if not push down central banks. I am not sure but I think this switch over to SOFR is one more sign of the system having problems. Maybe they are losing control.
I suspect (not an expert) the problem with LIBOR is the impending credit/debt crisis and negative global interest rates. LIBOR is published by the BoE, which is likely to be forced to a negative rate in 2021. SOFR on the other hand is published by the New York Federal Reserve, who have a vested interest in keeping the existing monetary system operational. In conjunction with their printing press, this will provide the Fed with a bit more ‘adjustability’.
I am not finding information on Ripple being involved, but certainly a global financial system run on blockchain, regulated by global citizens could do a better job than the Fed. Ripple involvement would be awesome for us crypto folk.
And yes, I think it’s possible the conventional banking system could be offline as a result of the impending crisis, when it hits (see Bank Run).
I’m fed up, pun intended. Great question! Back to school