In today’s world, technology and intense rivalries play a vital role in the invention of new things that are refining the way digital money move from place to place. However, growing customers’ expectations and anticipations are also changing the outlook of digital commerce today. That’s exactly what Ripple has been doing lately (causing headache to the competitors).
Nonetheless, one question happens to come to the mind and that is, which of the financial transactions – be it cross-border transactions, government and customers’ disbursements – have the greatest possibility to be digitized? This has been one of the key points of the recent Citi Digital Money Symposium organized by Citi Bank.
It is important to know that banks of the future were also discussed and if the global financial world needs banks or just banking services. During the course of the Digital Money Symposium, Marcus Treacher, Ripple’s Global Head of Strategic Accounts, was interviewed by Elena Anisimova, the VP, Private Company Access & Advisory at Citi Bank.
As we know, Ripple is a digital asset and a real-time cross settlement platform created on an open-source internet protocol. Also, Ripple enables fast and secured cross-border remittances, which are almost free. However, Treacher also purports the fact that Ripple is making sure money transfer is changed. During the interview, he said:
“What we (Ripple) are trying to do is to re-work how banks move value between each other and we always work with banks. We have a strong partnership with the largest banks in the world which we are using to work with us to really build-out our solution to benefit the banks and Ripple.”
Blockchain technology has the ability to change money transfer. Even though this technology hasn’t been adopted as it should be, due to the fact that it is still in its juvenile stage, but many people are beginning to acknowledge its ability to change the world.
With that in mind, banks are more concerned about blockchain than cryptocurrency itself, and Ripple’s Treacher had this to say during the interview:
“Banks are focused on blockchain because that’s where the increase of the value that can be provided for their end customers in terms of efficiency, speed, accuracy, and awareness. It all kicks in using blockchain technology and in Ripple’s case, its net of value version of that creates a significant value of proposition for their customers worldwide.”
Strategic Accounts Global Head of Ripple further went on to say that,
“The digital asset element really comes into play in the financial services contacts for managing liquidity and flows between different value stores in different fiat currencies. What I mean to say is that, if you are moving Dollars to Euro, both currencies are very high liquid currencies and can move very quickly.”
Marcus Treacher continued,
“If you happen to fund a currency which is ‘illiquid’, then that’s a difficult proposition for a company which happens to buy goods in that country or pay people in that country. In that case, using a digital asset to fund these accounts when required – ready for payments to happen, is a difficult proposition.”
Concerning how digital asset (XRP) will play a major role in providing liquidity, Treacher concluded:
“So there are two levels of value, one is the immediate payment, which is the blockchain value. While the second is the delivery of liquidity, which is really where we see one of the major value of propositions for the digital asset in the future.”
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
[Photo, Elena Anisimova of Citi Bank (left) with Marcus Treacher of Ripple (right). Source, citibank.com/icg/sa/digital_symposium/2018]