Ripple Chief Blockchain Technology Officer Says Crypto Needs Banks to Reach Mass Adoption
The cryptocurrency industry has many different companies and individuals that are trying to expand the reach of the cryptocurrency world. Ripple is one of these firms. According to David Schwartz, Ripple’s CTO, banks are where the value currently is and the company needs to bridge it to get mass adoption. He said that on Twitter on January 3rd.
Banks are where the value is today. We need bridges to where today's value is if we're going to get mass adoption. The Internet got most of its early growth from the military and existing centralized information services for much the same reason.
— David Schwartz (@JoelKatz) January 3, 2019
In a recent discussion on Twitter, David Schwartz and other users discussed how cryptocurrencies should be related to banks. The users Kane Em pointed that Ripple is building a service for banks and that the XRP token is going to be embraced by large financial institutions. About it, he said that cryptocurrencies were born as an idea to get away from traditional financial institutions.
The comments made by Kane Em are related to a thread started by Brian Armstrong, the CEO and co-founder of Coinbase, for Bitcoin’s tenth anniversary. Several users were requesting for the popular crypto exchange to list XRP, one of the largest virtual currencies in the space.
David Schwartz answered that it is necessary to work with banks to bridge both worlds. He linked this decision to work with banks with the internet services that spread and got most from existing centralized information services.
Schwartz has also been criticized. One of the things users said to him was that banks could simply use their own coin to process their transactions. But Ripple’s CTO said that not even banks want to use a token that is controlled by banks.
Not even banks want a token controlled by banks.
— David Schwartz (@JoelKatz) January 4, 2019
Schwartz explains that these institutions do not want to have to rely on systems that are controlled by competitors since they have never than that. The solutions being developed by Ripple would allow banks to use a system that nobody has administrative access to, improving the financial industry as a whole.
Ripple is trying to connect banks and other financial institutions using the RippleNet and other networks and services provided by the company. Using the XRP digital assets, these companies are able to reduce their costs and process faster transactions, allowing them to offer better services for users at a lower price.