Survey: Many Banks Linked to Ripple Yet to Enter Testing Phase
A Financial Times survey indicates most banks and financial services linked to Ripple have not yet entered the testing phase. Last year, Japanese and South Korean banks reportedly tested the first traditional cross-border payments using the Ripple network.
XRP Has Grown Through Speculation
Hank Uberoi, Executive Chairman of Earthport — a global settlement network specializing in cross-border payments — recently noted: “Banks are hesitant to use XRP because they are unsure of the regulatory aspects of it. If money is in transition and the price of XRP collapses in that time, what happens then?”
An interesting point, to be sure, which perhaps explains why many of the banks linked to the Ripple project in recent months have allegedly yet to begin their pilot programs, as New York Times author Nathaniel Popper highlighted in a tweet earlier in the week.
Ripple calls its virtual currency, XRP, the 'global liquidity solution for payment providers and banks.' But when the Financial Times asked 16 banks linked to Ripple if they had used XRP, how many had? None. @MAmdorsky writes https://t.co/I337oNw0uv
— Nathaniel Popper (@nathanielpopper) January 18, 2018
Despite the fact banks have yet to dive into XRP headlong, the project itself has benefited very well from announcements and suggestions of pilot programs in recent weeks. Indeed, as testament, the XRP price has seen unstoppable growth over the past 12 months, seeing its price escalate by an astonishing 36,000 percent at one point.
The growth puts Ripple alongside some of America’s most valuable companies, like Uber and Airbnb.
Ripple Aims to Replace SWIFT Network
Ripple technology is aimed at replacing, or at least out-performing, the SWIFT payments network that presently rules the traditional international banking infrastructure. The project seeks to help established traditional financial institutions move to a more modern and optimized network.
To this end, Ripple CEO Brad Garlinghouse labels XRP as “the global liquidity solution for payment providers and banks.”
Unsurprisingly, though, the aforementioned Uberoi believes Ripple has a real challenge to overcome if it intends to beat out SWIFT. The San Francisco-based cryptocurrency company needs more banks to embrace its technologies in order to oust Swift. “It is only of value if everyone is connected to the network — like a fax machine, if others don’t have one, then it is not much use,” said Uberoi.
However, the Ripple team asserts that “[e]nabling the internet of Value is not something we can do alone and it’s not something that happens overnight.”
Recently, the global money transfer company Moneygram indicated its willingness to participate in a pilot project paid for by Ripple. The initiative will reportedly involve the currency XRP. For now, though, it seems the other linked institutions aren’t rushing into their pilot programs.
What’s your take? Is it still too early for Ripple to be getting heat, should there be more patience in the community? Let us know what you think in the comments below.
Images via Wikipedia, Hacked