Ripple Submits Response To US Federal Reserve To “Support Interbank Settlement Of Faster Payments”
With the digital era having being changed fundamentally, even Federal Reserve have to adapt and make the appropriate changes to its system. According to a report from December 2018, that surfaced online and shared by Ripple and XRP enthusiast Bank XRP, Ripple has submitted answers to a few key questions to the Federal Reserve seeking to promote a “ubiquitous, safe, and efficient faster payments in the United States through the facilitation of real-time interbank settlement.”
In response to the first question revolving around if RTGS is even the appropriate strategic foundation for interbank settlement of faster payments, Ripple states that it “strongly feels” such systems can leverage emerging technology.
“For the U.S. to remain internationally competitive and drive payment innovation, it is important that new systems are exploring and adopting the latest technology.”
Ripple further promoted how its Interledger Protocol is enabling interoperability across cross-border systems and further sees “great potential in leveraging digital assets.”
Immediate & Low Cost Payments With Full Transparency
According to Ripple, there will be sufficient and growing demand for faster payment solutions as it states, “cross-border solutions like RippleNet are live and growing.” As for the criticality of interoperability between RTGS services, it shares that ‘atomic transactions’ across these systems will offer significant value as demonstrated “in cross-border settlements using the open-source Interledger Protocol.”
By using the new technologies, Ripple shares that the US can position itself to best meet the needs of the current market while changing the expectations for payments in the future.
“We see a future where expectations for domestic and cross-border payments converge, with customers expecting all payments to be immediate, low-cost, and with full transparency into status and fees. We call this the Internet of Value, a vision where value moves as seamlessly as data does over the Internet. To meet this expectation, payment systems and financial institutions will have to leverage new and emerging technologies.”