Author: Marie Huillet
Breakaway commentary: Ripple CEO Brad Garlinghouse said on May 20 that big banks have good reason to accept cryptocurrency and blockchain innovations, even though it poses a significant threat to current oligopoly. Garlinghouse emphasized that Ripple works with financial institutions and regulators – whether or not they violate the system.
Ripple CEO Brad Garlinghouse said on May 20 that big banks have good reason to accept cryptocurrency and blockchain innovations, although it poses a clear threat to current oligopoly.
Garlinghouse emphasized that Ripple works with financial institutions and regulators – whether or not they violate the system. He believes that given the concerns of global regulators about money laundering and terrorist financing, the idea of bypassing anonymous transactions by governments and authorities will not prevail.
Instead he said:
“I don’t think the banking government will disappear. The bank is applying a very important regulatory framework. I think this is very important to society. I personally think that banks will continue to play this role. I think this is a new set of technologies. New business can be developed from it.”
In Garlinghouse’s view, the bank emphasizes part of the solution, which addresses the advantages and possible resistance generated by the intersection of encryption and traditional finance.
The technology through XRP and Ripple aims to significantly reduce the cost of remittances for cross-border asset transfers. He pointed out that regional banks and so-called Tier 1 currency center banks may respond differently.
For regional banks, in the case of Fargo, he pointed out that the motivation to support the efficiency of blockchain technology and cryptocurrency is more agile at the outset:
“99% of banks like what we are doing because we are democratizing something that is controlled by a few banks and their competitors.”
Regarding Tier 1 currency banks, Garlinghouse acknowledges that their current oligopoly control over the banking sector is facing a potential threat of new technology and capital flows – according to reports, Citibank earned $8 billion from other banks last year.
However – given that KYC-compliant crypto transactions do provide significant reductions in remittance costs and friction – the CEO claims that even the “biggest” banks may be forced to adopt these technologies in order to prevent company giants like Amazon from preempting step.
According to reports, JPMorgan Chase announced that it will launch its own blockchain local settlement digital assets this fall, called “JPM Coin”.
Source : Author: Marie Huillet