On January 9, a public news agency revealed that 13 monetary institutions have begun to use RippleNet, a blockchain network for settling payments. The network has now 200 banks in the Ripple ecosystem.
Fintech applications and banks have incorporated RippleNet that apparently introduces quicker, transparent and low-cost options to conventional settlement framework. Such as SWIFT.
In an official declaration, the CEO of Ripple said that 100 monetary institutions joined RippleNet a year ago and that RippleNet is witnessing a 350 percent growth in live payments
Garlinghouse, the CEO of Ripple, said that the network is adding two or three clients each week, most of these clients are monetary institutions operating in cross-border payments.
JNFX head of emerging markets has said that RippleNet is very practical while handling payments for worldwide customers.
He said payments between nations are always troublesome an inefficient due to various factors like cost, speed, and transparency. RippleNet is formed precisely to overcome these issues.
He also said that for their clients who are from the major conglomerates to people living in villages of Nigeria, their decision to join RippleNet and use its payment system for on-request liquidity has made sense.
In a different statement, Ripple CEO noticed that critics of Ripple guaranteed banks wouldn’t use XRP in future. However, he stated that there is an increase in demand for RippleNet, especially for cross-border and worldwide payments.
Last year a few critics claimed that monetary institutions would never go with a digital asset. However, in reality, digital assets and networks offer their clients superior services and integration at a lower cost. CEO Ripple replied to the critics. He said banks would use it, and they are.
At present, Ripple is trying to exploit the current $2 trillion global payments market, in which SWIFT is the dominant company.
In a short period, it is unrealistic for significant banks and monetary institutions to totally change to RippleNET and Ripple’s liquidity system since significant banks control the SWIFT system and they have the incentives to trust the current system of payments.
It is feasible for Ripple at the moment to focus on small banks and fintech applications and compete with SWIFT by making major banks use RippleNet to deliver and manage small banks in both developed and developing markets.
For the time being, RippleNet needs to continue its development rate if it wants to tackle with global settlement systems and discover approaches to get major monetary institutions into its ecosystem as eventually, the value of a settlement network originates from the institutions that operate over the system, adding to the liquidity.