The International Monetary Fund (IMF): Ripple is challenging the establishment payment infrastructures
According to the International Monetary Fund (IMF) ‘s August report, the IMF seems to be focusing on how innovative technologies are affecting the financial sector. And through that, they have recognized Ripple as one of “very few new players” that are challenging the established payment infrastructure.
Ripple is challenging the established payment infrastructure
The report stated:
“Some new platforms aim to compete with payment systems such as TCH ACH, TCH RTP, and the Fedwire Funds Service, which are only accessible by banks. For example, RippleNet provides the software and the rulebook for a transfer mechanism, whereas financial intermediaries function as nodes and may partake in the consensus mechanism.”
The IMF notes that Ripple, along with Facebook’s blockchain project Calibra and Circle’s CENTER consortium, is aiming to compete with existing payment solutions. This sets it apart from popular payment gateways like PayPal and Square that are merely complementing existing remittance agents to their service.
Brian Brooks, head of the Office of Monetary Control, recently criticized SWIFT, the payments network switched, for how slow and ineffective it was, thus becoming a case for blockchain technology by Ripple. Although significantly effective, the distributed ledger technology (DLT) is still in its infancy, and lack of standardization impedes its adoption.
Another major hurdle to such innovative payment systems is the lack of a simple regulatory mechanism.
The report stated:
“RippleNet is designed as a commercial payment system without being subject to payment system-specific requirements, other than requirements posed by banks. There is, however, some limited scrutiny, e.g., by FinCEN and the Federal Reserve.”
Ripple CEO Brad Garlinghouse recently took to Twitter to announce that he will speak at the opening Crypto Town Hall alongside US Representative Tom Emmer.
He once again urged US regulators and lawmakers to embrace crypto as the future of payments in his tweet:
Join me tomorrow at the inaugural Crypto Town Hall with @tomemmer! The U.S. has a real opportunity to embrace crypto innovation as the future of payments (despite 2020 throwing an ongoing series of cataclysmic events our way ?). Register here: https://t.co/QtpV2881H5
— Brad Garlinghouse (@bgarlinghouse) August 19, 2020
Elsewhere, as AZCoin News reported, Ripple has been recognized as one of the fastest-growing companies by Inc., one of America’s leading business magazines. Ripple occupies 123rd place on the extensive list that features 5,000 businesses.
While Ripple is the highest-ranking blockchain-related company, some private firms have seen even more impressive progress in the financial services department. Nationwide Mortgage Bankers is in the lead in its respective category with a 16,395% growth.
We’re excited to rank 123rd on the 2020 #Inc5000 list of America’s fastest-growing private companies!
Thank you to our amazing team who bring passion to their roles every day. https://t.co/ZAnGbZGpM1
— Ripple (@Ripple) August 17, 2020
Meanwhile, Georgia-based privacy startup OneTrust is at the top of the list (48,337 percent). After raising an additional $210 in February, it is now valued at $2.7 bln despite being founded only four years ago.
Read more:
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