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Is the Banking System a Fraud?



There are many other loopholes to the working of banks in the economy, but for now, these should be enough to open your eyes to the banking system.

You’ve worked the entire four weeks until your bones were dry from fatigue, you spent sleepless nights working on a project or an assignment and even over worked your body to an unhealthy degree- at the end of it all, however, you have your paycheck in hand. You finally have your wage, or do you?

The bitter fact is that it’s not you but your bank that has received the wage. In our day to day lives we are dependent, more than anything on banks for the money that we earn- when it should be the other way around; that is, banks should be depending on us instead for the money that they offer to the world.

And when one pays close attention- the entire system appears to be absurd! How can a third party that had no role in the amount of work that we did and efforts that we put have a say in the amount of money we can withdraw and the number of times we can withdraw it?

Today we are here to unleash some facts about the banking system which will show to you how the whole banking system is a sham:


Are all banks broke?

Yes, this is no act of God, or a natural calamity or a tsunami- all banks from the beginning have been broke. After all, they have no money of their own- any assets that they appear to have were provided to them by their initial customers.

True, they earn small amounts of interest on the money that we deposit with them, but it is indeed not enough to give them amounts large enough, such as 10 lakh, which they can offer to a minimum 100 people at once. So where is the money coming from? Well, it’s all fall system that we will slowly unravel.


Fractional Reserve Banking

Now, the biggest fraud that banks can possibly play is that they go ahead and offer more money than they actually have and this is primarily known as Fractional Reserve Banking.

As mentioned earlier, banks have limited money supply- all the money that they have to offer is what we deposit with them so how come when a person applies for a large loan the banks are ready to give that money as though it was theirs. The sad fact is that banks are actually offering ‘your’ money to others when giving out loans- and the credit security they offer is not half as true as it would appear.


False Credit Creation

We will now see how the banks create false money in the economy. Supposing you deposited one thousand dollars with the bank; the next step by the bank would be to keep ten percent ($100) of it as cash reserve and use the remaining, $900 as money owned by the bank itself. So now the bank has your money, which is one thousand dollars for appearance’s sake and 900 dollars as its own money. Thus, the total money increases to 1900.

And now suppose you want your thousand dollars back- here’s what the bank will do- just like you deposited money with the bank, there are many others who deposited money with the same bank in a similar fashion, the banks will use a small percentage of the money deposited by various people and give it to you back as ‘your’ money.

This is all just a hollow scheme.


The Central Bank

Perhaps the most significant loophole in the banking system of the economy is The Central Bank and its activities and the biggest sham that it plays is the printing of money or deficit financing.

Whenever the money supply in the economy is falling, banks resort to deficit financing and print more money, but the actual amount of goods and services in the economy remains the same. So although now, instead of $100 you have $200, you cannot get an extra bag of rice because the total production was not increased only the paper money was.



Real rise in the economy occurs when the total production increases and not the total amount of money circulating in the market. There are many other loopholes to the working of banks in the economy, but for now, these should be enough to open your eyes to the reality of the banking world.


Explained: How Ripple Works with Banks



The Ripple network, RippleNet, provides companies and financial institutions with a range of services to support cross - border payments.

Ripple is a payment processing technology that integrates directly with banks and other affiliated institutions, with faster processing times and lower costs than PayPal. As such, most Ripple processing power comes from institutional gateway users who use Ripple to process payments.

Unlike most blockchain technologies, which are secured by a decentralized miners ‘network, Ripple is protected by a network of server validation with an internal ledger that guarantees transactions based on consensus.
The Ripple is mainly a payment processor and currency exchange, and the XRP is a currency, but secondary to the Ripple’s mission.

In 2014, several banks and payment processors signed up to use Ripple in a test capacity after which the adoption has been on a continuous rise.



The Ripple network, RippleNet, provides companies and financial institutions with a range of services to support cross – border payments. Ripple also boasts versatility, the ability to help large financial institutions and its fast transaction time. Bitcoin is entirely decentralized, as it has been done to allow financial transactions without the need for external companies such as a bank. By creating its digital token to assist in the transfer of assets, Ripple is committed to supporting existing financial systems and improving their global transaction capabilities.

Many people wonder what makes the wave different from a company like PayPal or Stripe when it comes to processing payments. While PayPal and Stripe are directly applicable to consumer solutions, Ripple works more as an infrastructure for banks than as a stand-alone solution.

Ripple is a private company whose goal is to create and enable a global network of financial institutions and banks.
Essentially, Ripple is taking a stand against what they call the “walled gardens” of financial networks made up of banks, credit cards and other institutions like PayPal. While Ripple focuses on helping large banking institutions, the XRP is in tune with the little boy in an attempt to bring banking the unbanked. The success of Ripple ultimately depends on the number of partners on the RippleNet ( which has been steadily increasing over the last year ), the number of people using the Ripple product and the effectiveness of XRP.


Ripple for banks, not against banks

Unlike Bitcoin, which aims to eliminate banks as intermediaries, banks are the biggest users of Ripple. Ripple is used by banks to make international payments faster, cheaper and more transparent.

Instead of competing against the current banking Goliaths in the sector, Ripple’s plan is to partner with the world’s leading financial institutions to offer a blockchain solution. According to Ripple, a member of the global network, financial institutions can process customer payments worldwide immediately, safely and cost-effectively.

Instead of converting US Dollars into other currencies, taking into account changes in exchange rate margins, processing fees and slow transaction times, Bank A can transfer 5 million dollars of XRP to Bank B’s Ripple portfolio, which can then be converted into local currency.

Designed for businesses, payment providers and banks, Ripple is a payment interface designed to facilitate the use of xcurrent and xrapid. Ripple offers a distributed payment network for fast and affordable cross – border transactions and also relies on its own home currency, XRP.

If more banks join the network, this may lead to increased demand for XRP and encourage other banks to join the platform. Ripple is a major player in the cryptocurrency world, thanks to its strong financial support and strong financial support.


Alternative to SWIFT

The transducer for cross – border payments for banks, xcurrent, provides an alternative to SWIFT payments between banks and payers in different countries. Ripple describes xcurrent as a global system of real-time gross settlement (RTG) – the same label that the world’s central banks use to describe their own settlement systems. The ripple software then controls the funds in the relevant banks and updates the accounting books of each bank to carry out the payment, the company says that the settlement process is completed in seconds.

Street banks are usually the worst for this, but even services such as PayPal are very expensive – it costs about 2. 9 % to make an international payment with PayPal. ‘Ripple is for banks what the Internet is for the world, and they call the concept “Internet of Value “.’

The ripple XRP network is used and tested by financial institutions and banks to distribute and settle international payments more efficiently. As you can see, the XRP coin is progressing enormously with strategic partnerships and is accepted by a wide range of organizations.

The primary objective of ripple is to create a global billing network for more efficient transactions between financial institutions around the world. Xrp is the name of the digital currency that makes transactions on the Ripple network easy. XRP is a stand-alone digital asset that facilitates transactions on the Ripple network, acting as a bridge between several fiat coins and as a source of liquidity.

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XRP Adoption: SBI CEO says banks should use XRP by 2025



XRP token has uplifting news as SBI which is the sponsor of Ripple has planned to have a few banks in Japan and utilize the token by the 2025 Osaka Expo.

Ripple‘s XRP token currently bears further uplifting news as SBI which is a Ripple enthusiast has planned to have a few banks in Japan and utilize the token by the 2025 Osaka Expo.

The President of SBI Holdings and also the Representative Director of Yoshitaka Kitao said recently that the SBI VC Trade will be going live in the of March, which implies that the confirmed individuals will almost certainly buy the XRP token, among different tokens, with the Japanese Yen (JPY).

As soon as the order books will go live then the Japanese market will be having some extra liquidity that will take into account substantial volumes of cross-outskirt exchanges by the gathering of banks. The VCTrade platform has been foreseen for quite a while.

Nonetheless, the most intriguing goody of data from the declaration is that the SBI will likely have Japanese banks to utilize the XRP token by 2025, in time for the 2025 Osaka Expo. SBI has also made a consortium of a few banks, which will no uncertainty encourage this driven offer to have such a large number of banks to use XRP.

The SBI President referenced that the organization was dealing with an “S Coin Platform” that would also help in the issuing of digital currency, which he plans to convey as a platform for payments to the Osaka Expo in 2025.


Yoshitaka Kitao on Bitcoin and XRP

Kitao has further claimed that the Bitcoin has no fundamental value about which an opinion is shared by the Warren Buffett which states that the XRP is the number one crypto asset.

Kitao is bullish on XRP and has in the past owned a few certain expressions on the development of Ripple and it’s cost.

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Twitter Poll: People Prefer Banks Rather Than Crypto Exchanges



A recent Twitter poll was started by Ran Neuner resulted in favor of the banks as most of the people seem to prefer banks over crypto exchanges.

A recent Twitter poll was started by Ran Neuner who is also the host of CNBC Crypto Trader Show which resulted in favor of the banks as most of the people seem to prefer banks over crypto exchanges as means of saving their money rather than that of Crypto Exchange. Cryptocurrency exchanges may still have a long way to go but not for now.

The most awaited result of this poll was that  68% of 9,734 voters still prefer to put their money in traditional banks rather than putting it on crypto exchanges. It is not like that people don’t want Crypto exchanges, 32% preferred cryptocurrency exchanges. The result of this poll could be predicted by anyone who is following the episode of the cryptocurrency industry from last year.

There are many crypto exchanges which were hacked and have caused the loss of millions of dollars of the users and in many cases, there is no way of getting those funds back. One of the recent news of these hacks is the Cryptopia hack which is in New Zealand. This hack has led to the loss of about $16 million worth of ERC20 tokens alone. After this horrible incident, users at this moment are not sure if they will ever get their funds back.

Recently a Canadian cryptocurrency exchange QuadrigaCx is not letting the users access their funds because the CEO passed away with the private key which is known only to him. As a matter of fact, the case is still engaged in long and careful consideration to decide if it was really the death of the CEO or an exit scam that has locked away $190 million in crypto assets.

These problems continue in increasing the doubt regarding the cryptocurrency industry as a whole and keeps the world away from it. The primary advantage of the cryptocurrency should be the safety of users’ funds and if that cannot be guaranteed then people would instead stick to the system about which they are more familiar with, at least no traditional bank has been hacked and funds are lost.

Honestly, there isn’t much difference between the two. It is because most of the exchanges are centralized, but even worse is the fact that hackers can shut down an exchange like Mt Gox.

This should definitely be a challenge for the industry to pull up the socks and make sure that these exchanges are secure and the information of the users can be confident. Until or unless this goal is achieved, the industry may continue to sneak as far as mainstream adoption is concerned.

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