Ripple Blames the Lack of Regulatory Clarity for the Banks’ Reluctance to Use XRP

[PRIBO247]

* According to Ripple’s head of banking, Marjan
Delatinne, the reason why banks are hesitating to
adopt Ripple products is the lack of regulatory
clarity.
* Delatinne claims that the situation is more
comfortable for payment services and other financial
institutions.
* However, Ripple’s products and XRP itself can be
used for better liquidity management, which may
lead to the creation of a global economy through
cryptocurrency.

XRP has been a somewhat controversial cryptocurrency
for a long time now. There are even some who claim
that it might not be decentralized, that it is a security,
and alike. It is also judged by the crypto purists for
collaborating with banks. However, it appears that even
the banks are hesitant when it comes to adopting XRP
and its technology.
Marjan Delatinne, Ripple’s head of banking, has
recently commented on the current situation regarding
the role of XRP in the banking industry. According to
Delatinne’s statement, banks are not in a hurry to use
XRP or even its xRapid which is XRP-powered, because
of the lack of regulatory clarity.

How can Ripple change the finance industry
Delatinne commented on the issue during Frankfurt-
based Euro Finance Tech conference. On this occasion,
she openly stated that the reason behind not using
Ripple’s technology is the regulatory framework which
revolves around digital assets. In other words, the
structure is not clear enough for banks to be
comfortable, while payment service providers and
potentially other financial institutions are less governed
by such obligations.

As a result, banks are hesitant to adopt crypto-based
payment solutions, XRP-powered or otherwise.
Delatinne also mentioned XRP’s use cases in regards to
xRapid, explaining the process through an example of
someone sending $100 from the US to Mexico. With
Ripple product such as xRapid, doing so is instant and
simple, as cross-border payments are one of Ripple’s
and XRP’s primary use cases.
Thanks to its efforts, Ripple might change the way in
which liquidity is managed, at least when compared to
the current situation. By making use of xRapid, people
can learn how to build a global economy through
cryptocurrency, by just “using the costs associated with
the liquidity management.”

Due to regulation uncertainty, NO banking
institutions are using xRapid as of now, ONLY
payment service providers.
Marjan Delatinne, Ripple
NOV18 #XRP
pic.twitter.com/QeLxLQQaKJ
— Steven Diep (@DiepSanh) December 18, 2018

Ripple’s xRapid was a product expected to arrive for a
long time, which finally happened during San
Francisco’s Swell conference in October of this year.
Since then, Ripple was able to confirm at least three
payment providers that are willing to support the
system, including Cuallix, MercuryFX, as well as
Catalyst Corporate Federal Credit Union.
Furthermore, Ripple’s managing director of South Asia,
the Middle East, and North Africa, Navin Gupta, has
made a move to revolutionize the world of finance.
During the Bahrain-based BlockOn conference, he
talked about Ripple’s reasons for focusing on the
international payments sector.

According to him, Ripple’s goal is to try and solve all
the most significant problems regarding international
payments. After completing that task, the company will
be able to start focusing on other things as well. He
compared Ripple’s role in cross-border transactions to
Google’s role in internet searching. He also stated that
the goal is not only to do it, but to do it right, and to
earn the respect of people and their businesses.

https://cryptopotato.com/

[PRIBO247]

There have always been one controversy or the other floating round ripple. So I am not surprised at any hesitancy in using it. I do not also believe that regulation has anything to with the banks' hesitancy.