Cory Johnson, who worked as a chief market strategist at Ripple, commented on the failure of European banks to launch a banking payment system.
According to the ex-top manager, bankers cannot do without the Ripple’s cryptocurrency XRP.
— Cory Johnson (@CoryTV) September 9, 2020
Development of a payment system for bank settlements was started in 2015 by the Swiss bank UBS Group AG and the British company Clearmatics. It was aimed at working with digital versions of major currencies and accelerating payments. Fnality International company was established last year to implement the system. The largest banks Banco Santander and Credit Suisse joined the project. The project was slated to launch in 2020. But recently, Fnality International announced that due to regulatory difficulties, the launch is being postponed to the first quarter of 2021. Fnality International will also need a delay to build up its technological know-how.
Commenting on this statement, Cory Johnson said that banks are wasting time since everything has long been created – this is the blockchain technology and the Ripple network implemented on it with the XRP cryptocurrency. Ripple has been the leader in payments for many years now, and there are no known failures in transactions. The technology is constantly improving, now Ripple offers a ready-made product for cross-border payments called On-Demand Liquidity (ODL), which exchanges are already using.
The procedure is extremely simplified: exchanges accept cash, exchange it for XRP, instantly transfer it abroad, and there is a reverse conversion to fiat money. Everything happens in seconds, so volatility does not affect the exchange rate. According to Cory Johnson, bankers will not invent anything better for their needs, they will still have to return to the blockchain and will lose many more years to develop something comparable to XRP and ODL.
Ripple has been struggling for years with the barriers that regulators in different countries have set for XRP to use by banks and financial companies. Last year, through the influential Wall Street Journal, the company approached the US Congress with a proposal to recognize the legitimacy of blockchain and distributed ledger technologies in the financial sector.
To be heard, Ripple bought out an entire Wall Street Journal page for its announcement. In recent years, while it isn’t allowed to operate in the US market, Ripple has been promoting its technology in the markets of Latin America, Oceania, and Australia. If the European market also turns to XRP, US lawmakers will have to allow XRP to be used in the world’s largest financial market to keep America pace with new trends.