The bear market has taken a toll on all cryptocurrencies including XRP (XRP), though it managed to rise and hold on to the 2nd position on coin market cap. However, in spite of this drop, the XRP community remains optimistic that things will get better soon. In fact, on most online forums, this community is probably one of the most optimistic in spite of the depressed prices. But this optimism is not blind hope. All indicators point to XRP as a superior crypto that will disrupt the banking industry, even though most banks are yet to jump on to the XRP train.
Ripple’s technologies give banks the platform to significantly cut on cross-border transfer costs and increase transaction speeds to unprecedented levels. A technology like XRapid can help banks save up to 60% of costs, which can positively impact their bottom-line. Ripple is also continuously improving on its tech in order to give the banking industry an even higher degree of efficiency. For instance, two months ago, they upgraded XCurrent to XCurrent 4.0. This gives small banks the leverage to compete with the big banks in the cross-border payments market.
But even with such strong tech, the adoption has been slow, though this has nothing to do with ripple. It all boils down to regulations. Recently, Brad Garlinghouse said that there is a need for a global regulatory framework around cryptocurrencies. The banking industry is one of the most regulated industries in the world. That’s why they are slow in adopting this new disruptive technology that has the capacity to open up the industry to new opportunities. However, though the process is slow, things will change, and ultimately the right regulations will come in place, and ultimately it will be global.
All indicators point to the possible enactment of favorable regulations for crypto in the banking industry. For instance, in Asia, most of the major economies such as Japan and Singapore have shown positive progress in terms of regulations.
These countries are very clear in their regulations which explains why the SBI consortium, which has a huge influence on the Japanese banking industry is going all in on XRP. Another important region that could play a role in the enactment of positive regulations is, Europe.
In September, a Brussels based think tank called on the EU to adopt common regulations with regards to cryptocurrencies. If the EU comes up with such regulations, the U.S too would probably start looking into more favorable regulations, in order to maintain its lead in technology and finance. The Federal Reserve already has a fast payments task force and it could be the starting ground for more effective regulations favorable to cryptos in the U.S.
The moment the right regulations come in place, it would be a much-needed trigger for banks to go all in on XRapid. The tech incentive is already there, which means with proper regulations, banks would adopt it. The idea of 60% plus savings is not something that the industry would skip on. Besides, no other blockchain solution aimed at the banking industry has the technical capabilities of ripple’s products such as XRapid.