FT survey clears that Ripple backed banks are yet to Enter Testing Phase
Jan 23, 2018 Posted / 24018 Views
Ripple has been pronouncing time and again about its association with the famous banks and how it is helping them about in their payment processes. However, a new Financial Time survey explains that the most banks and financial firms associated with Ripple are yet to enter testing phase.
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In the year 2017, many Japanese and South Korean banks had revealed that they are testing the cross-border payment services with the help of Ripple network for the first time. However, now Hank Uberoi, Executive Chairman of Earthport, a global settlement network which specializes in cross-border payments have remarked that
“Banks are hesitant to use XRP because they are unsure of the regulatory aspects of it. If money is in transition and the price of XRP collapses in that time, what happens then?”
This seems all too confusing as we know that Banks had been associating with Ripple from quite some time now and nobody is able to find out why they have not yet tested with the project or even implemented the pilot project so far. Nonetheless, New York Times author Nathaniel Popper highlighted in a tweet earlier in the week
“Ripple calls its virtual currency, XRP, the 'global liquidity solution for payment providers and banks.' But when the Financial Times asked 16 banks linked to Ripple if they had used XRP, how many had? None.”
We need to acknowledge the fact that even though banks are yet to experience Ripple and as such have not offered to work with XRP, the company has very well popularized itself as the firm assisting the large centralized bodies and institutions. These pronouncements have helped garner the popularity from the collaborations. Even the announcements of pilot programs in recent weeks have given it space in the newspapers. It is very well apparent from the Ripple price growth as XRP value has witnessed an unstoppable growth over the past 12 months. If you will look at its price growth the currency surged by an astounding 36,000 percent at one point.
The growth puts Ripple alongside some of America’s most valuable companies, like Uber and Airbnb. Ripple technology is positioned as replacing or at some points out-performing, the SWIFT payments network that currently rules the conventional global banking infrastructure. The project aims to assist established traditional financial institutions shift to a more modern and optimized network.
Ripple CEO Brad Garlinghouse calls Ripple as “the global liquidity solution for payment providers and banks.”
Quite naturally, though, the above-mentioned Uberoi considers that Ripple has a real challenge to rise above if it is expecting to battle with SWIFT. The San Francisco-based cryptocurrency company aspires more banks to encircle its technologies in order to oust Swift. As Uberoi remarks
“It is only of value if everyone is connected to the network — like a fax machine, if others don’t have one, then it is not much use.”
Nonetheless, the Ripple team asserts that “[e]nabling the internet of Value is not something we can do alone and it’s not something that happens overnight.”
Lately, the global money transfers company Moneygram proposed that it is willing to contribute to a pilot project sponsored by Ripple. The enterprise will apparently engage with the Ripple digital currency. As at present it seems the linked institutions are not hurrying into these pilot programs.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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