Banks Unlikely to Apply Blockchain, Ripple Says

David Schwartz, chief cryptographer of Ripple, is convinced that banks aren't going to use blockchain for cross-border payments in the nearest future
14 June 2018   1311

According to the chief cryptographer of Ripple, David Schwartz, banks are unlikely to use blockchain technology for cross-border transfers in the foreseeable future. This is reported by CoinTelegraph.

In his opinion, banks are aware of the potential for blockchain, which can reduce costs and reduce the time for the implementation of transactions. However, the level of scalability of technology is still low, which prevents the widespread introduction of blockchain on a global scale.

The representative of Ripple claims that the Interledger protocol and, in particular, the xCurrent solution provide the ability to conduct instant payments. This, in his opinion, gives Ripple significant competitive advantages compared to other payment networks.

At the same time, Schwarz calls the xCurrent solution "unallocated registry". So, in the case of xCurrent, network nodes do not have access to the common registry, which is the basis for block-network networks like Ethereum (ETH).

What we hear from many of our customers is that it’s imperative to keep their transactions private, process thousands every second, and accommodate every type of currency and asset imaginable.
 

David Schwartz

Chief cryptographer, Ripple

According to another representative of Ripple Markus Tremacher, the company presented a project in which banks can carry out "classic" payments on the blockchain. However, the financial institutions were skeptical of the new initiative, citing the fact that "it is not so easy to transfer the whole world to a blockchain".

BTC is Better For Global Remittances Than XRP - Bitspark

CEO George Harrap is sure that the first cryptocurrency is much more practical because it is accepted by much more companies to pay
28 May 2019   226

The head of Bitspark, George Harrap, expressed the opinion that Bitcoin is better suited for cross-border payments than the Ripple's XRP token, which was specifically designed for this purpose, Crypto Briefing reports.

In particular, Harrap is sure that the first cryptocurrency is much more practical because it is accepted by much more companies to pay. At the same time, various services use XRP rarely because of its insufficient liquidity when exchanging for fiat currencies. This situation makes the Ripple token expensive to pay.

Bitspark researchers have published a report that assesses the suitability of various cryptocurrencies for making international payments. Thus, experts assigned Bitcoin and Ethereum “medium degree of suitability”. At the same time Stellar, thanks to the built-in decentralized exchange and the convenience of issuing stablecoins, received a higher mark.

The xRapid and xCurrent solutions, where the XRP token is used, are assigned a low degree of suitability due to their low liquidity when interacting with fiat money. In particular, according to Harrap, xRapid is convenient for operations with one currency, however, interaction with several monetary units is fraught with considerable difficulties. For example, an attempt to convert US dollars to Kenyan shillings will require payment routing through various channels and, possibly, conversion into various currencies, which translates into significant commissions.

The number of Ripple gateways that exist hasn’t changed in four years and basically consists of bitcoin exchanges for people to speculate on the price of XRP for BTC. None of these companies are remittance companies, nor are they using XRP for its intended purpose.
 

George Harrap

Head, Bitspark

Also in the company's report says that despite the low rate of transactions, the level of mass adoption of bitcoin is high, and it is more often used in payments than XRP.

There are no liquid Nigerian naira (NGN) and Ethereum (ETH) market, EOS and Vietnamese dong or XRP and Philippine peso markets. The only market which has sufficient liquidity and people willing to provide a local currency in exchange for a cryptocurrency is usually bitcoin.
 

George Harrap

Head, Bitspark

CoinMetrics researchers recently revealed a discrepancy of $ 84 million in Ripple reporting and XRP blockchain data.