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evo

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Ripple, which offers a blockchain for faster settlement of international payments, has added 75 banking clients to its blockchain network. Here's an example of some of the banks that have signed up for Ripple:

  • Bank of America
  • RBC
  • Standard Chartered
  • UBS
  • BBVA (Spain)
  • MUFG (Japan)
  • Akbank (Turkey)
  • SEB (Sweden)
  • Axis Bank (India)
  • Yes Bank (India)
Add those to the 47 bank consortium in Japan and the 57 existing big name banks, and Ripple is clearly gaining traction very quickly.

Brad Garlinghouse, CEO of Ripple, made the following statement:
Our pace of signing new clients has dramatically increased. I also think people are getting more comfortable with blockchain technologies. It’s no longer a science experiment. It’s not theory, it’s very real.

The main appeal of blockchain technology for the banking industry is to improve the efficiency of their transaction processing. Banks are gravitating towards Ripple's value proposition of cheaper rates and faster transfer times for international payments. Best of all, bank customers won't know or care they're using Ripple when they're making transactions. Here is Garlinghouse's pitch to the banks:
If your customer wants to send yen to Japan, you are captive to the correspondent banking network and your customer has a bad experience and you, as a bank, have to endure cost to transmit that money.

Ripple can process 1,000 transactions per second and settles an international payment in three seconds on average. Ripple can also be used for in-country payments - many of the banks in Japan are using Ripple for domestic payments due to the sluggishness of the local payments network there. For the most part, Ripple is focusing on cross-border payments because that’s the biggest pain point for banks and banking customers.
 
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Several of the commentators that I have heard seem to be expressing caution with regards to Ripple due to the high involvement/interest of the banks in this particular crypto.

Their thinking is that if (when) there is another economic crisis the banks will take a big hit and will need to liquidate assets quickly. Therefore, they'll sell their holdings of Ripple and the price will dive.
 

evo

Site Admin
Joined
Apr 2017
Several of the commentators that I have heard seem to be expressing caution with regards to Ripple due to the high involvement/interest of the banks in this particular crypto.

Their thinking is that if (when) there is another economic crisis the banks will take a big hit and will need to liquidate assets quickly. Therefore, they'll sell their holdings of Ripple and the price will dive.
Hmm I scratch my head at that one because the banks, unlike us, are not hoarding Ripple to be a medium of currency. They are using Ripple's network, the blockchain that powers Ripple, to drive their costs downward. Their intent is to completely replace Swift for all international transfers. Swift is trying to pay catch up, but they are too far behind. And some of high level executives from Swift have already changed jobs and are working for Ripple now.

Another economic crisis should/will happen in the future. But their involvement with Ripple shouldn't be affected because it won't change the systems they have in place for transferring international funds.
 
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