so is it right to conceptualize the entire Ripple system as a replication of the existing banking system with it being likely that banks will act as gateways (and possibly as validators) doing the issuing and redeeming of XRP's (IOU's) except somehow with a p2p aspect layered in btwn individual ppl and open ledgers?
XRPs are a native currency, gateways don't issue and redeem XRPs.
On the other hand, gateways issue and redeem their own IOUs (usually denominated in a fiat currency such as USD or EUR).
At a minimum Ripple should incorporate the existing banking system, and also do much much more. I would love it if I could open a checking account that lets me hold not only US dollars but also Bitcoins, XRPs, even Euros, and when I write a check or use my debit card it sells just enough of my non US-dollar assets to cover the cost. This is the holy grail, for me at least, because then I don't care if Amazon accepts Bitcoins or uses Ripple, I can just pay them using my debit card like normal except that the money will come from a just-in-time sale of Bitcoins on the distributed Ripple exchange.
The promise of Ripple is that with a Ripple gateway bank account, you can spend your bitcoins anywhere that takes credit cards, checks, ACH payments, or wire transfers.
