TL;DR
XRP has been a somewhat controversial cryptocurrency for a long time now. There are even some who claim that it might not be decentralized, that it is a security, and alike. It is also judged by the crypto purists for collaborating with banks. However, it appears that even the banks are hesitant when it comes to adopting XRP and its technology.
Marjan Delatinne, Ripple’s head of banking, has recently commented on the current situation regarding the role of XRP in the banking industry. According to Delatinne’s statement, banks are not in a hurry to use XRP or even its xRapid which is XRP-powered, because of the lack of regulatory clarity.
Delatinne commented on the issue during Frankfurt-based Euro Finance Tech conference. On this occasion, she openly stated that the reason behind not using Ripple’s technology is the regulatory framework which revolves around digital assets. In other words, the structure is not clear enough for banks to be comfortable, while payment service providers and potentially other financial institutions are less governed by such obligations.
As a result, banks are hesitant to adopt crypto-based payment solutions, XRP-powered or otherwise. Delatinne also mentioned XRP’s use cases in regards to xRapid, explaining the process through an example of someone sending $100 from the US to Mexico. With Ripple product such as xRapid, doing so is instant and simple, as cross-border payments are one of Ripple’s and XRP’s primary use cases.
Thanks to its efforts, Ripple might change the way in which liquidity is managed, at least when compared to the current situation. By making use of xRapid, people can learn how to build a global economy through cryptocurrency, by just “using the costs associated with the liquidity management.”
Ripple’s xRapid was a product expected to arrive for a long time, which finally happened during San Francisco’s Swell conference in October of this year. Since then, Ripple was able to confirm at least three payment providers that are willing to support the system, including Cuallix, MercuryFX, as well as Catalyst Corporate Federal Credit Union.
Furthermore, Ripple’s managing director of South Asia, the Middle East, and North Africa, Navin Gupta, has made a move to revolutionize the world of finance. During the Bahrain-based BlockOn conference, he talked about Ripple’s reasons for focusing on the international payments sector.
According to him, Ripple’s goal is to try and solve all the most significant problems regarding international payments. After completing that task, the company will be able to start focusing on other things as well. He compared Ripple’s role in cross-border transactions to Google’s role in internet searching. He also stated that the goal is not only to do it, but to do it right, and to earn the respect of people and their businesses.