XRP Too Slow And Centralized For Banks: Nano Founder

[PRIBO247]

XRP adoption is unlikely as it’s slow and too centralized,
says the founder of Nano (NANO ). He thinks banks are
unlikely to accept it as it would give Ripple Labs, XRP’s
creator and biggest hodler, a near-monopoly on the entire
Forex market.
Colin LeMahieu, who created the Nano cryptocurrency in
2017, explained to Crypto Briefing that the financial sector
couldn’t use XRP. In his eyes, the fact that Ripple controls
more than half of the total supply – with no obligation to
spend or burn it- makes it “too risky” for the banks.
“Many FX firms I’ve talked with have considered and
dismissed them based on the fact that one company holds
over 50% of the market cap,” wrote LeMahieu in an email.
“A single company holding this much of a position on a
currency isn’t something they would accept from a risk
perspective.”

Is XRP centralized?
The XRP token is specifically designed as a transaction
network for the financial sector. Banks can convert fiat
funds into XRP and then send it to the recipient-bank, who
convert it back into the local currency. Whereas traditional
payment transfers can take up to three days to settle, XRP
transactions can complete in seconds.
More than 100bn XRP tokens were created, exactly six
years ago today. Out of the total supply, the creators
retained 20%; the remaining 80% was given to Ripple Labs.
Since then tokens have gradually been distributed to users.
In May, the company moved the supply into an escrow
account; this gives it access to a billion tokens every year.
Nearly 41bn tokens are currently in circulation, with the
remaining 59% still held the Ripple escrow account. It
would take roughly 59 years – to the year 2077 – for the
company to distribute the remaining supply.
Up until this summer, it was common practice to use
‘Ripple’ and ‘XRP’ interchangeably when describing the
token. But in an email sent out in July, Ripple Labs
dissociated themselves from the XRP token, which they
described as an “independent digital asset”.
The company still owns more than 60% of the XRP total
supply, but as the Chief Marketing Strategist explained
to The Street at the time, this didn’t necessarily mean they
controlled it, “We happen to own a lot of XRP – we own a
lot of cash, chairs, and computers.”

Nano is faster than XRP
Nano is fast. Most blockchains use a legacy structure;
blocks are processed and confirmed sequentially. The
Nano blockchain is based on a block-lattice architecture.
Each user effectively has their own blockchain that is
incorporated with other Nano users.
Tests in October found a Nano transaction to Binance
completed in roughly three seconds, seven seconds faster
than XRP. Stellar Lumens (XLM) , another settlement token
and itself an XRP fork, could complete in six seconds.
Unsurprisingly, LeMahieu believes Nano is the best
solution for the settlements market; it’s a fast and feeless
payments solution. Banks want to speed up a process that
can take days to confirm. He points out that Nano allows
near-instant settlement and also lowers overhead costs,
meeting the real-world priorities for most FX traders.
LeMahieu also argues Nano is more decentralized than
XRP because the total supply is circulation. Surplus tokens
not sold or distributed were burnt. No private entity, or even
the Nano team, owns more than half of the supply.
“Our biggest differentiator to XRP is that we’re a true,
decentralized currency rather than a company”, he wrote.
“This translates well to the financial sector which will never
really accept a private entity that controls ~50% of the
currency supply for various purposes.”

XRP Adoption
Ripple Labs prides itself on its number of partnerships.
Many of these are with well-known international banks and
financial institutions. Crypto Briefing found out in October
that the National Bank of Kuwait (NBK) was in the process
of implementing xCurrent, a fast messaging service used by
banks before, during and after a cross-border transaction.
LeMahieu believes most banks wouldn’t be able to adopt
xRapid, the payments solution that uses XRP, because
Ripple controls most of the supply and is too
centralized. “XRP is taking the strategy of trying to insert
itself as a new, central trading platform,” he wrote. “This is
unlikely to be accepted by FX firms since it would be a
central point of failure and puts one firm in monopoly
control of the entire market. Regardless of how good they
think their governance will be, this will be unlikely to ever
be accepted.”
The number of banks actively implementing xRapid remains
uncertain. We contacted numerous banks who had said
previously they were testing it – including American
Express, Credit Suisse, UBS and Barclays. All either
declined to comment or never returned our emails.

Nano
The Nano team itself isn’t engaging in the FX market.
Traders can build inter-dealing services on top of the
network. Banks could add currency pairs and simply swap
into Nano for a cross-border transaction, which would be
faster and cheaper than the traditional settlement systems.
With the total supply distributed among users, it would also
be more acceptable from a risk perspective.
LeMahieu is confident interest in Nano will grow, and says
that he is already in talks with a few interested traders. The
main selling point is still its speed, three times faster than
XRP. He says that this makes it an obvious alternative,
“There’s little reason to market this as it’s a natural
competitive advantage, anyone able to execute faster
trades will win every time.”

https://cryptobriefing.com/

[Wasimalik]

I think we should laugh at him and XRP is going to the moon.