The minutes of the 4th "Study Group on Virtual Currency Exchanges", which took place on June 15, 2018, have been published recently. At this meeting, through video call, the participants included: Joichi Ito, Director of Massachusetts Institute of Technology Media Laboratory Gary Gensler, previously Chairman of the Commodity Futures Trading Commission (CFTC) Sagar Sarbhai, Head of Government & Regulatory Relations, APAC & Middle East at Ripple These are the slides supporting Sagar Sarbhai's presentation

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Ripple: Enabling the Internet of Value
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資料３

2. 235Team members
⅔ engineering talent
Our Experience
Financial Services
J.P. Morgan
Citi
SWIFT
HSBC
Visa
Accenture
Paypal
Prosper
Technology
Google
Apple
Yahoo
Bloomberg
NASA
Regulation
Federal Reserve
SEC
NSA
San Francisco | NYC | London | Luxembourg | Mumbai | Tokyo | Singapore | Sydney
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O U R V I S I O N
The Internet of Value:
Enable the world to move money
like information moves today.
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San Francisco New York
London
Tokyo
SBI Ripple Asia
Sydney
Our Investors
Google Ventures
Luxembourg
Total Funding
$94M
Company Overview
F O U N D E D 2 0 1 2
Singapore
Mumbai

5. 5
Connectivity
Coordinates transactions across ledgers
Bi-directional messaging + real-time settlement
Liquidity
Leverage a digital asset for reach to new corridors
Enables global reach without pre-funding overseas
LIVE TODAY
IN PILOT

6. 6
Connectivity Solution
Coordinates transactions across ledgers
Bi-directional messaging + real-time settlement
Payments completed in seconds versus 2-4 days
LIVE TODAY

7. Legacy Connectivity: Sequential Process Creates Problems
Originating
Bank
Sending
Correspondent
Receiving
Correspondent
Beneficiary
Bank
One-Way Messaging, Unlinked From Settlement Instructions
Step 1 Step 2 Step 3
Delays Relay process can cause 2-4 day delays
Uncertainty Fees and total cost unknown to the sender
Risk No payment tracking or status information available
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8. Bi-Directional Messaging With Settlement Instructions
Speed Payments settle real-time, instead of 2-4 days
Transparency End-to-end tracking for the life of the payment
Certainty Total cost and message details confirmed before initiation
Ripple: Coordinated Process Enables New Benefits
Originating
Bank
Beneficiary
Bank
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9. Ripple: Specialized for Interbank Payments
RippleNet
● Permissioned network of
financial institutions
● Underpinned by Interledger -
connects & coordinates ledgers
● Banks maintain their own ledgers,
enabling scalability and data privacy
● Governed by a rulebook, maintained
by advisory board of banks
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10. Liquidity Solution
Leverage a digital asset, XRP, for reach to new corridors
Enables global reach without pre-funding overseas
IN PILOT
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11. Today: Pre-Funding in Destination Currencies Is Expensive
BRL
UAH
JPY
XAF
AUD
THB
USD
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12. Float sitting in transaction
accounts globally
Problem: Delayed Settlement Results In Trapped Cash
$5 Trillion
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13. xRapid Eliminates Pre-Funding in Destination Currencies
BRL
UAH
JPY
XAF
AUD
THB
USD
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14. xRapid Reduces the Opportunity Cost of Capital
Liquidity on demand
No Float
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15. Path to Production
2016 Proof of Concept with 12 banks
● Test payments where banks held small amount
of XRP and provided FX conversion
● Pros: Enabled reach without foreign pre-funding cost
● Cons: Subject to price volatility
2017 Evolved the Model and Built a Product
● Product preserves the benefits without FI having to hold XRP
● Leverage local exchanges for FX conversion
2018 Commercialization
● Announced our first pilots, underway now
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16. MEXICO
Originating FI
PHILIPPINES
Beneficiary FI
1. Exchange
MXN/XRP
2. XRP Ledger
3. Exchange
XRP/PHP
FI EXCHANGES FIAT FOR XRP
Via a local exchange.
FI does not have to hold XRP.
XRP TRANSFERRED
Between digital asset exchanges.
XRP EXCHANGED FOR LOCAL FIAT
Distributed directly to the FI’s
account or disbursed over local rail.
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Exchange Model: Benefits of XRP Without Holding It
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17. xRapid Solution
F A S T T R A N S P A R E N T L O W C O S T
Transactions are instant
(3-5 secs) across
exchanges, and vary
depending on local rails
Real time APIs provide
to the second status of
their payments via APIs
Reduce costs
significantly with
lowered transfer fees,
and FX rates that beat
or match spot FX
xRapid provides on-demand access to liquidity through digital asset exchanges
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18. XRP: Digital Asset for Payments
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19. Global Virtual Currency Regulatory Landscape
● Japan FSA has led from the front in setting the global agenda for
virtual currency regulations. Many Asian jurisdictions following suit
● KYC AML still remain key areas of concern but focus shifting on other
areas such as technology governance, price volatility, custody etc.
● Ripple Policy Recommendation: Address risks through a global
licensing framework for exchanges
● Regulatory clarity will lead to institutional participation, reduced
volatility and emergence of enterprise use cases of digital assets
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20. UK Financial Conduct Authority
We see firms using cryptocurrency for
international money remittance,
lowering the cost and time of sending
money overseas. So there are legitimate
and economically significant use cases.
*Source: https://www.fca.org.uk/news/speeches/blockchain-considering-risks-consumers-and-competition 20

21. IMF
“Understanding the risks that crypto-assets may
pose to financial stability is vital if we are to
distinguish between real threats and needless
fears. That is why we need an even-handed
regulatory agenda, one that protects against risks
without discouraging innovation.”
*Source: https://blogs.imf.org/2018/04/16/an-even-handed-approach-to-crypto-assets/ 21

22. Sagar Sarbhai, Head of Regulatory Relations, APAC & Middle East
ssarbhai@ripple.com
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