Ripple as a blockchain startup successfully promotes its cross-border payment solution by entering into numerous partnership agreements with financial heavyweights such as Banco Santander, Western Union and UAE Exchange.
However, the company is not the only one in this segment. She will face other well-known and influential players such as JP Morgan Chase (with his JPM coin) and IBM Blockchain World Wire. According to Forbes, IBM has a significant market share in the blockchain industry, since its Hyperledger Fabric is the most frequently used solution on the Forbes Blockchain 50 list.
All of the above solutions are focused on financial and corporate institutions, offering them fast and cost-effective cross-border payment systems.
Although, according to Elizabeth White from The White Company, the modern banking system is not yet ready to make innovative decisions:
For decades, large banks have been using systems such as SWIFT, and have entire “departments” designed to process transactions. Although the blockchain could significantly modernize, automate, secure and speed up the entire process, its implementation would require retraining and processing of all bank operations.
Moreover, banks resist innovations that can lower transaction fees.
For many banks, switching to XRP, JPM Coin or World Wire is simply not worth it, because their customers do not yet require the speed and low cost of operations with the blockchain, and in fact banks receive a large income from commission fees and the like.
While the blockchain and digital form of money are considered to be the future, we still have a long way to go in which Ripple or similar projects will play a significant role.
And what do you think about this?
