Of late, there have been lots of talks about XRP being adopted by banks and how this could play out in the crypto’s favor. In fact, Ripple has made huge strides in its efforts to get as many banks as possible to adopt XRP.
However, it seems that the apparent support that banks have expressed for XRP may not be the real deal. For one, the main reason that most banks are working with Ripple is to utilize its new and innovative payment solutions like xCurrent.
In a post on Medium, James Sangalli sought to explain why banks are now averse to the use of XRP as the base currency while they want to use other payment solutions developed by Ripple.
James mentioned privacy as one factor that has had many banks shying away from XRP.
When using Ripple’s xRapid that incorporates XRP in cross-border transactions, the transactions aren’t made private, meaning that other competitor banks can keep track of a banks transaction activity and volume. No bank wants that – especially if it’s a big bank.
Cost And Alternatives
Using XRP is more costly for banks as opposed to using other alternatives, as James noted. Utilizing XRP is indeed cheaper and faster than the traditional means that banks have been using, but that doesn’t mean there aren’t other cheaper means besides XRP or xRapid.
James mentioned R3’s Corda platform as one cheap alternative. Also, with this alternative, banks have the option of keeping their dealings private.
Banks Just Want Some PR
In James’ post, he remembers his work as a blockchain expert working for a big bank in Australia. Apparently, the employment of “blockchain experts” turned out to be just a PR stunt used by the bank to keep investors impressed.
James went on to opine that while the banks may seem friendly to blockchain technologies and cryptocurrencies, they’re still working covertly to stifle its development. In fact, as James points out, banks often close down customer accounts that seem to operate in the crypto business.