Ripple: Banks Won’t Adopt Blockchain
June 15, 2018
Ripple chief cryptographer David Schwartz states, banks are unlikely to apply blockchain for processing cross-border payments due to low scalability and privacy.
In the interview to Reuters Schwartz said, despite banks recognize the potential blockchain has in regfard to faster transactions and related costs, the technology is still non-scalable and insufficiently private to be adopted by banks globally:
“What we hear from many of our customers is that it’s imperative to keep their transactions private, process thousands every second, and accommodate every type of currency and asset imaginable.”
Ripple’s senior vice president Marcus Treacher noted, the firm has launched the project to offer classic blockchain payments. But banks denied the initiative saying that it is just impossible to set he whole world on blockchain.
In May financial institutions that took part in pilot platform Ripple xRapid reported on transactions savings from 40 to 79 per cent per each and noted significant operation time reduction: from 2-3 days to just above two minutes.