As Ripple’s Head of Government and Regulatory Relations for APAC and the Middle East, Sagar Sarbhai recently spoke with CNBC, he also talked about list of major banks using XRP.
While sharing updates on the topic, Sarbhai informed that their native token of XRP had been previously piloted with 12 banks prior the development of their new product, xRapid. He also confirmed that the selected banks were absolutely independent from one another and were located in different parts of the world.
“In 2016 what we did was we piloted with 12 banks. These 12 banks were based across regions across the globe and they did not have prefunded relationships with each other. And what we did was we gave these banks some XRP and asked them to settle within themselves and it worked beautifully”, stated the official.
The key aspect they have been focusing on was the reduction of volatility risk and accounting for regulatory atmospheres as this had been the main group of issues which these banks were facing back then.
He continued stating: “(they said) we would love to adopt it but we cannot, because there are capital requirements and regulatory uncertainty. So they said that, its volatile, and that there are no set of regulations, so we cannot hold those assets in our books”.
Inspired by the feedback and official findings of the previous project the team made the new project of xRapid in the advanced way as it is today. “To drive the adoption of the technology, Ripple began moving into partnering with payment providers who were more willing to try on the product… That works because they don’t have to hold the digital asset on their books but using the piece of software called xRapid they can actually connect to a digital asset exchange, convert fiat to XRP at that time and XRP to fiat in real time on the other end and that actually happens in 3 seconds so there’s no case of volatility risk as well”.
As key three factors which are important in the general state of blockchain and cryptocurrency technology Sarbhai mentioned services, technology, and regulation. “I think since the time Bitcoin was implemented there was this notion that down with the banks down with central banks clearly that has not happened”, he concluded.