A recent report named “Overview of Digital Assets and Blockchain” from Goldman Sach’s Investment Banking Division has pointed to Ripple as an ‘opportunity in payments’ with Coinbase and Circle. It specifically points to RippleNet, which is a network of large payment providers like banks, institutions and money remittance services use Ripple products and solutions.
As governments across the world are increasingly studying crypto, allowing cryptocurrencies as payments or even creating their own digital assets or CBDC’s, the move to digital assets and cryptocurrencies seems to increase daily. Crypto company advertisements are dominating our sporting events and we now have athletes taking salary in Bitcoin. We even have top sports figures like Floyd Mayweather and David Beckham joining the metaverse and promoting crypto. It all points to a growing excitement for cryptocurrency and digital assets.
Ripple XRP, SWIFT and Banks
Ripple and specifically Ripple suite of products that utilize the XRP token may be attractive to large banks, institutions and central banks as it can solve cross border and bank to bank settlements in seconds rather then days, as some of the current systems do. Many banks and institutions today use the SWIFT payment system to handle cross border payments. The SWIFT system in short relies on communication between the two parties to credit and debit the accounts sending and receiving the funds and utilizes pre-funded nostro accounts to handle liquidity for the transfers. The actual transfer of the funds can take significantly longer in some cases 3 – 5 days.
Ripple’s cross border solution utilizing the XRP token can settle payments between different currencies and across borders within seconds making it a potential competitor to the SWIFT system. Currently Ripple is fighting a legal battle against the SEC regarding the initial sale of the XRP token and whether it should be considered a security or not. Cryptocurrency enthusiasts and investors are expecting an outcome from this case soon.