Ripple struggles to convince banks about its tech, but financial institutions are more aggressively benefitting from it

  • 30 June 2019, Sunday, 09:30

Ripple’s Chief Technology Officer [CTO], David Schwartz was a part of the Future of Fintech 2019 event hosted by CBInsights, where the CTO re-affirmed the community and the host, Jeff Roberts, about xRapid.

Being a FinTech company and a proponent of its native coin XRP, Ripple’s focusing on international payments, which is a tough game due to the high competition like Swift. However, Schwartz noted that payment systems are not capable of supporting instantaneous settlements, citing Swift as an example. Ripple’s payment system, xCurrent was the company’s way of solving this problem along with xRapid that allows financial institutions to process faster payments. However, Ripple has had a tough time convincing Banks of its tech.

“We do have a struggle on our hands to convince particularly banks because banks are extremely conservative, they are very slow moving. What we discovered that non-bank financial institutions, payment companies are much much more aggressive and they much more interested in things that can save them time and money and cost.”

Even with the solution to its problem, the CTO explained that even though xRapid was a means to solve the problem, the world wasn’t ready for it.

“We built xRapid as a way to kind of solve that problem and it was adapted to the real-life situation that we were facing. We kind of had this idea that the institutions would hold XRP or a digital asset. They would make their payments with the digital assets or regional hubs would settle with digital assets and for a variety of reasons the world wasn’t quite ready for that, including regulatory issues, lack of liquidity, immature ecosystem around the digital asset. “

Thus, the company came up with a more practical plan with xRapid which was aimed at solving the international remittance problem. Even though people have a false notion of relating digital assets with high volatility when compared to regular money transfer, the volatility with the digital asset is lesser compared to that of fiat currency, which would take hours to several days to process the payment.

Ripple’s native coin XRP showcased less volatility in its price since the beginning of the year. While BTC is pumping and falling almost every day, XRP stands firm on the third position on the CMC list and was valued at $0.4176 with a market cap of $17.78 billion. The 24-hour trading volume of the coin was reported to be $1.66 billion as it spiked by 1.29% over the past day. In the past seven days, XRP fell by 12.18% and continued to fall by a minimal 0.35% within an hour.