Will blockchain disrupt everyday banking?
Will the hype live up to the promises to speed up all sorts of financial transactions and record-keeping?
Ripple, a key name in this digital currency ra space, focussing solely on one off cross border payments, last week announced a $55 million Series B round (totalling $93m to date
In addition, Ripple has signed partnerships with the likes of Standard Chartered, BMO Financial Group, and Shanghai Huarui Bank
Chris Larsen, Ripples CEO, explains how the banks are using Blockchain to move money and integrate it into day to day banking
Examples of Ripple used by banks
– carrying out foreign exchange transactions on Ripple instead of the SWIFT network,
– facilitating escrow arrangements between corporate customers.
– making low value payments to contractors in other countries – making the process cheap and fast . Ripple can make it easy for Facebook and Uber and Amazon to make payments to developers in real time.
– It’s online and completely global.”
Blockchain lets companies transfer and record assets using the Internet, to disrupt back-end financial services.
What’s stopping you from being a “Blockchain bank” ? Do you need a licence?can accountants and lawyers provide these type of services?
Blockchain Company Chain, is working with banks to replace financial messaging systems, and R3 is helping a consortium of banks build a tamper-proof private ledger to record their transactions.
It seems as ripple, chain and r3 are specialising in one section of the Blockchain world.
The Series B funding round was led by SBI Holdings, including participation from Standard Chartered, Accenture Ventures, and SCB Digital Ventures, the venture arm of Siam Commercial Bank.
Existing Ripple investors include GV (Google Ventures), Andreessen Horowitz, IDG Capital Partners, and Jerry Yang’s AME Cloud Ventures.
Other banks using Ripple are Westpac, National Australia Bank (NAB), Mizuho Financial Group (MHFG), and Siam Commercial Bank.
The price of Ripple (which is also a digital currency in its own right) shot up about 25% on Thursday morning in response to the news.
Question? How does Ripple compete with Bitcoin
Can a non- bank use Ripple? Does one need a licence.
Can the banking world be disrupted by allowing accountants and lawyers facilitate this service?