Traditional payment methods are largely still being used by most of the world’s financial institutions for their core businesses. Even though cryptocurrency offers speeds unmatched by traditional methods especially with cross-border payments, not everyone is very excited about the complete switch to cryptocurrency or blockchain solutions for their business. This is one of the reasons why Ripple is constantly seeking out partnerships on its RippleNet, to increase crypto and blockchain adoption but also simply to let traditional players see the benefits of the new solutions in financial technology.
Recently, Ripple’s Chief Technology Officer, David Schwartz, spoke at a Future Fintech event, about all the wonderful things that can be achieved in the financial sector through cryptocurrency and blockchain technology. He expressed that one of the ways new fintech can help is to eliminate the current traditional methods that use middlemen.
— CB Insights (@CBinsights) June 12, 2019
Ripple CTO on RippleNet
Even though there are quite a few different start-ups in the digital asset and blockchain technology space with a mission to use new methods to facilitate transactions, Ripple is arguably the biggest of them. Ripple currently has hundreds of institutions all over the world who use its services for cross-border payments.
According to Schwartz:
“Part of the problem is that payments systems are not capable of instantaneous settlement [and] payment companies are much more aggressive than banks. Ripple is working on getting enterprise customers together to negotiate together, circumventing SWIFT and traditional systems.”
xCurrent, xRapid and xVia are three of Ripple’s precisely tailored services to make payments and transactions a lot easier for many people all over the world. These three solutions are a part of RippleNet which is literally a network of many financial institutions including banks and other payment service providers, who all use Ripple’s different payment solutions to improve their core businesses. Ripple generally wants to increase the adoption of RippleNet and hopes that at some point, many more financial institutions, even in developing parts of the world, would be a part of the network.
Furthermore, Ripple has an initiative called Xpring. This is an arm of the company that seeks to invest in, nurture and guide new projects and companies who have a desire to run the same race, bringing new solutions to payments and transactions all over the world.
Stablecoins and the Internet of Money
Ripple is also interested in propelling the internet of value as much as the internet of money. The internet of value describes a way for value to be easily transmitted and exchanged the exact way information is been exchanged on the internet today. The internet of money can also be explained in pretty much the same way.
Speaking on the internet of money and how stablecoins could be an important part of the cause, Schwartz said:
“If the vision is an internet of money, collateralized stablecoins will be a part of that vision. [Facebook’s GlobalCoin] looks like a collateralized asset and whoever owns the collateral can make the rules.”
Digital Assets and the Government
David Schwartz also expressed his opinion on all the ambiguity surrounding cryptocurrency regulation. According to him:
“I would say one of the biggest problems to making digital assets is this fear of governments turning around and saying this isn’t legal. The jury is still out on the decentralized finance space. There’s a real shortage of actual use-cases. Payments we all know need to be better, that’s really concrete. But the further away you get from that, the more speculative it gets.”
This was probably said because of the possibility of governments in India and China, placing an outright ban on cryptocurrency in general while still retaining other blockchain solutions.