Life Is A Present

A new idea of the monetary system emerged in recent years: Ripple Monetary System.

Here's a video introducing how it work, say "What is Ripple Pay"

You may find more details on this website "Ripple Pay- P2P Foundation"

Could Ripple Monetary System replace the existing banking system?

I don’t think so. Unless our economy turns to be a simple, small and local-based business model, the new system can hardly support the economy growing up.

Even if the economy shrinks down, there’re still some concerns about Ripple Monetary System.

Concern 1: Trading costs would get high, and the efficiency would worsen. In Ripple system, you need to find someone who is trusted/ known at the same time by you and your counterparty; to some extent, banks are trusted by most people.

Concern 2: Default Risks are high. In Ripple system, you lend money to your friends or family or someone you trust. It’s embarrassing to press your money back when they fail to meet the payment or run away not to repay you all the money. Unfortunately, the one you trust may betray you someday. At least, banks will not risk their reputation without meeting obligations (no mention the case of bankruptcy).

Concern 3: There will be a bank-like institution or company to run the similar function eventually. The Ripple system is designed to run on internet; that say, an IT institution or company will be necessary to provide an on-line payment netting service which is similar to the function of internet banking that some banks have provide now.

In my opinion, the existing monetary is not evil; the inappropriate management of banks makes the system fail.