Banks Looking To Make Their Own Cryptocurrency... Is Ripple In Trouble?
It looks like big money is starting to wake up to cryptocurrency. 10 major banks, including one I used to work as a teller for, are making their own cryptocurrency. This is a big deal as it is no longer a start-up raising capital but an established financial institution who is making the coin. That means they have the money and the reach that new companies may not have. This will be a big threat to other coins that want to compete and I see Ripple being the main competitor.
It is a smart move for the banks to use a cryptocurrency, it would cut the cost of fees dramatically on a global scale. That was why I thought ripple was a good investment as they would fit a need the banks would surely have. But if they make their own solution, I do not know where the coin will go.
According to the article this coin would also be exchangeable for cash at the bank itself which would be quicker to cash out than bitcoin or ethereum. This would definitely make crypto mainstream but how much would it hurt the other coins?
We will have to see what change this will have.
Here is the article for more info:
https://sputniknews.com/business/201709031057049475-new-cryptocurrency-banks/
**@funny is also my account
They (banks and institutions) completely misunderstand the whole concept. It is those banks and institutions that are the cause of bitcoin and other blockchain solutions. People don't want a bank or an institution to control, judge or to determine about money flow. It is too crazy if you think about the fact that you must pay ten of dollars to send some charity to an African. Sorry to late banks and institutions.
But axis bank and other banks have already made an alliance with ripple I guess that's not an issue to be worried on the main issue is that Ripple network can't move actual fiat currencies, balances in Ripple act like bank balances. If the bank somehow defaults on its obligation, people won't actually have the money they thought they had. This is not a big problem if you're just using Ripple to make payments, but it's a weakness if you're using Ripple as a store of value for fiat currencies. Your money is only as safe as the "bank" that holds it for you.
This will be major news for crypto and non cryptocurrency.
Yeah it is a game changer.
Will be watching closely to see how this plays out!!
No reason for backs to let a lot of the savings from moving to blockchain be captured by Ripple. Why wouldn't they build their own, and then the sponsoring banks can capture the value from transactions savings
The Chinese banks/govt own a large percentage of bitcoins and the other banks are making their own currency.
It's going to be an interesting ride.
It might also be a step in the right direction. Crypto will get mainstream adopted. Then the crypto-Banks screw it up again and then the path is clear for real cryptos
Wow this is really interesting! I'm surprised they'd rather compete with Ripple instead of just pumping and dumping from Earth, to the moon, back to earth, then to mars, etc.
There's really no explanation about what's new or clever about this. You don't need a blockchain to create a centralized, walled garden. And there's no explanation about how banks will settle. If I receive a million dollar payment and my bank now holds some settlement token, what do they do with the token if I want to wire the money over a conventional, domestic rail?
The tokens are pegged to fiat, so there's no revenue model from appreciation of the value of the token. So what is the revenue model? Are banks supposed to build this entire system and the pools of liquidity needed to make it work at their own expense with no way to profit from them? They don't fund their customer's payments today -- how does adding a token magically make them willing to do so?