Ripple XRP to be snubbed by banks?
Hi guys and girls and welcome back to another blog post!
Today we will be sharing an article posted on CCN, where they say that according to Reuters sources, about 12 banks are investing in a blockchain ledger complete with digital cash. While it is unclear which banks are currently participating in the $50 million project, a spokesperson for Barclay’s told the news organisation that the research and development stage is coming to an end.
The rarely discussed project began in 2015 with little fanfare and supposedly involves several major banks, who aim to use blockchain technology to reduce the cost of settlement and potentially other products. Reuters describes a bank-backed stablecoin with a broader scope than existing stablecoins that would inherently have whatever trust the several banks maintained associated with it. Among the banks mentioned are UBS, Deutsche Bank, Santander, Barclays and HSBC. Reuters was unable to get confirmation from any of the banks as to whether they are still working on the project.
Several of these financial institutions have disclosed their own blockchain projects and integration. Santander is particularly notable for its previous use of Ripple, which opened the door to speculation that Ripple were involved in the project.
The article goes on to throw a lot of FUD XRP’s way, arguing that if that were the case, there would be no need for secrecy and that Ripple may see yet another group of clients slip away. They also say Ripple’s vocal proponents believe that mass adoption of Ripple and XRP by mainstream banks is inevitable and the price of the asset will eventually reflect this, as well as mentioning how damaging JP Morgan deciding to go their own way instead of directly integrating the existing protocols created by Ripple Labs was to the project.
JP Morgan have a database of transactions, of course they need to create their own blockchain and put this database on their blockchain as well as use their JPM coin on this blockchain. HSBC, Bank of England, and eventually every single financial institution will put their databases on a blockchain. HSBS are hardly going to put their database on a blockchain that the Bank of China have created – but what happens when HSBC wants to send money to the Bank of China? ILP connectors will be in the middle and the transaction will settle using the cheapest, fastest and most liquid bridge asset available; XRP.
Stronghold Platform integrated with ILP this week, making Stronghold the first asset-backed USD enables connector on ILP. Instead of focusing on the developments of ILP and the facts, you get articles like the one above throwing a load of misinformation and FUD your way for the simple reason that it creates fear and uncertainty and therefore gets more clicks.
By this time next year, we will have regulatory clarity and Ripple and ILP will be the global standard for the transfer of value. The strongest hands will be the ones that come out on top, the ones that ignore all the FUD and focus on the facts.
Have a lovely weekend all, buy the dip if you feel the price is worth it and continue to accumulate and wait!
Written by Dominic Zohreh
Twitter – domz_invests
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