Ripple Representative Finds Banks Unlikely to Use Blockchain for Cross-Border Payments

Chief Cryptographer of Ripple, David Schwartz recently gave an interview to Reuters, where he discussed banks using blockchain technology. According to the source, Schwartz claimed that blockchain is hardly going to be used by banks in order to perform international payments. He explained his point highlighting the low scalability and privacy problems of the technology.

Schwartz also mentioned that despite of the fact that banks measurably acknowledge the great potential of blockchain technology, they still find it rather not scalable and not private enough. While the technology is able to provide solutions for reduced transaction times and costs, it is not ready to be implemented by banks on a global scale.

Schwartz also said: “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.”

Senior VP of Ripple customer success, Marcus Treacher earlier informed that the company had launched a project which aims to offer banks “classic blockchain-powered payments”. However, as reported, the banks rejected the initiative stating that “one cannot just put the whole world on a blockchain”.

According to Reuters, as of now many banks have tested and incorporated Ripple’s xCurrent technology which is built for cross-border payments. The new solution promises to be able to “eventually plug banks into distributed ledgers”.

Back in May, Ripple announced xRapid pilot platform uniting different financial institutions to take part in the initiative. According to the results, showed transaction savings were worth from 40 to 79 percent. At the same time, a significant improvement in transaction time was also seen: from an average of 2-3 days to only a few minutes.

Earlier in April, major international bank Santander, informed about launching its Ripple-powered blockchain payment network called One Pay FX. The bank reportedly became the first major financial institution to do so.

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