Ripple [XRP] plays a defensive game at the UK Parliament hearing
Yesterday at the hearing of UK parliament, Ripple defended digital currencies. At the hearing Ripple fielded the questions related to the advantages of blockchain and cryptocurrency and this resulted in an impartial view on digital currencies and the panel agreed on only one thing that there is a vast difference between blockchain in industry and cryptocurrencies.
A justification was given to the panel by Ryan Zagone, the director of Regulatory Relations at Ripple, describing the way in which their project can improve the transparency and efficiency of cross-border payments especially between banks, and this may save cost up to 60%. He even described the present shortcomings of international remittance. He said that you can mail a cash box and have superior tracking and certainty that you may send a payment by a bank.
Previously, Ripple had increased in order to find a structured regulatory framework from the UK government following tracks of Japan. Because Ripple puts on the defensive at the UK parliament blockchain hearing, it is in news at present. Mr. Martin Walker, the Director for Banking and Finance at the Centre for Evidence-based Management, reacted to Zagone’s explanation and questioned Ripple use as an interbank payment service by referring its great instability.
Zagone said that XRP is open for transfer of funds that are just 3 to 4 seconds lowering the risk of instability exposure to low and controllable levels. Until now Ripple has signed with more than 120 financial institutions and this year they are hoping for some more.
Mr. Walker divided innovation into three i.e. the good, the bad and the ugly. To explain: the good means the greatest underfunded but promising, then the bad means the maximum ICOs and cryptocurrencies and the ugly means those companies that are suffering from the blockchain fad.
After removing the blockchain use cases for healthcare and housing registry, one of the inquiry forms said that Mr. Walker was very negative. Then he explained that Blockchain is a big-time FAD and a diversion from real innovation in the banking sector. However, this has contributed nothing or very less.
At the time of verification, Zagone mentioned that the main advantage of the company’s technology was its ability for money transfer. And to this, an argument was made by Walker that a model that is better than the present SWIFT messaging system is offered by Ripple.
He added that as the people are facing difficulty in tracing payments, they are getting involved in the payments to actually upload the status. So just with a blockchain, people are not able to update the status of where the payment is. Also, Ripple’s pilot projects which declared to use XRP as a bridge between two currencies in an international transaction were criticized by Walker.