Ripple May Put Competitive Pressure on Traditional Banking System, India Fears
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Tue, 04/20/2021 - 08:07
Yuri Molchan A report for Indian authorities which provides a DLT overview, says that solutions like Ripple may be hard to compete with for the traditional banking system in India
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Ernst & Young has created a report for Competition Commission of India (CCI) about the blockchain technology, describing its weak and strong points and its potential for adoption in various spheres.
It mentions Ripple as a potential competitor to the traditional banking system globally.
Ripple solutions to compete with the conventional banking system: Ernst & Young
The report points out that blockchain (DLT) is a technology that promises potential benefits in many spheres, such as healthcare, insurance, government, BFSI, HR management, etc.
However, the report states that once blockchain is integrated DLT-based solutions will start competing with those that provide similar services but not DLT-based. This competition has already started in the sphere of cross-border payments.
Such payments made on blockchain platforms are faster, cheaper and do not require prefunding. As a particular example, the report mentions the San-Francisco-based Ripple blockchain behemoth that uses XRP for providing remittances and cross-border payments.