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Ripple May Put Competitive Pressure on Traditional Banking System, India Fears

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Tue, 04/20/2021 - 08:07
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Yuri Molchan
A report for Indian authorities which provides a DLT overview, says that solutions like Ripple may be hard to compete with for the traditional banking system in India
Ripple May Put Competitive Pressure on Traditional Banking System, India Fears
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Ernst & Young has created a report for Competition Commission of India (CCI) about the blockchain technology, describing its weak and strong points and its potential for adoption in various spheres.

It mentions Ripple as a potential competitor to the traditional banking system globally.

Ripple solutions to compete with the conventional banking system: Ernst & Young

 The report points out that blockchain (DLT) is a technology that promises potential benefits in many spheres, such as healthcare, insurance, government, BFSI, HR management, etc.

However, the report states that once blockchain is integrated DLT-based solutions will start competing with those that provide similar services but not DLT-based. This competition has already started in the sphere of cross-border payments.

Such payments made on blockchain platforms are faster, cheaper and do not require prefunding. As a particular example, the report mentions the San-Francisco-based Ripple blockchain behemoth that uses XRP for providing remittances and cross-border payments.

“An example could be the market for providing cross-border payments where traditional banks may have to compete with solutions such as Ripple, which is a blockchain concept-based tool that enables users to make cross-border payments in various currencies.”

The authors of the report particularly emphasize:

“Ripple may put competitive pressure on the traditional banking system given that it is faster, cheaper and transparent.”

Related
XRP Community Files Motion to Intervene in Ripple’s Fight with SEC

SEC’s legal action against Ripple threatens crypto industry’s future in the US: Bloomberg 

While, the blockchain giant Ripple is in the middle of the legal battle against the US Security and Exchange Commission, Bloomberg published an article in which the owner of advocacy company Cecere PC and Bloomberg lawyers share a view that the legal action of the SEC against Ripple is harmful for the future of the crypto industry in the US.

They opine why XRP cannot be viewed as a security or investment contract (the subject of the SEC’s lawsuit against Ripple, along with XRP sales).

Crypto influencers and experts have multiple times already publicly emphasized the importance of allowing the crypto sphere grow seamlessly in the US and the creation of the digital USD as soon as possible.

These experts point out that China has been already testing digital yuan (DCEP) for a while. It is going to be the first CBDC launched by a leading country and they fear that the US may lose its leadership in finance and technologies.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.