Ripple Named An ‘Innovation Example’ By Bank of America For Cross Border Payments
Bank of America is easily one of the most influential and one of the largest banks in the world, so any stance of this institution holds significant weight. With the recent declaration that Ripple is an “innovation example,” the XRP community is thrilled, as one member, BankXRP, shared a screenshot from the praise-filled document.
Bank of America : Ripple cross‐border solution Ripple’s distributed ledger solution remedies legacy correspondent banking infrastructure challenges and provides bi‐directional messaging to enhance payment tracking, data transmission, and enables enhanced certainty in settlement. pic.twitter.com/ScMSzfOU9c
— 𝗕𝗮𝗻𝗸 𝑿𝑹𝑷 (@BankXRP) December 8, 2019
The document sheds light on Ripple as a cross-border solution for payments. It states that the use of a distributed ledger, on Ripple’s part, solves a challenge in “legacy correspondent banking infrastructure,” and that it improves payment tracking and data transmission with the use of “bi-directional messaging.”
Though many cryptocurrencies may try to outdo the traditional financial system, Ripple isn’t taking on this battle. Instead, the platform is working to become a part of the system by integrating itself into it. So far, there are over 300 payment platforms and banks to already start trialing the On-Demand Liquidity and xCurrent platforms offered by Ripple.
The biggest rivals of Ripple, like the Swift payment system, aren’t willing to collaborate yet. Though there are many cryptocurrency advocates that believe that Ripple will actually replace Swift one day, the platform still believes that Ripple doesn’t have the longevity yet to be used worldwide.
To be clear, Bank of America hasn’t switched gears on its continual opposition of Bitcoin and other cryptocurrencies. In fact, the bank shut down accounts held by Justin Sun (the CEO of Tron) and Roelof Botha (a former PayPal executive). Reports from U.Today suggest that Bitcoin was purchased with Botha’s account.
Even with this good news, it still isn’t clear if the price of XRP will see some positive movement as a result. At the time of writing, XRP was priced at $0.221529, dropping by 1.34% in the last 24 hours.