Ripple is one of the top five cryptocurrencies today and is gaining in popularity every day. It is the digital currency that connects banks with other banks and payment providers. Ripple enables financial transactions globally through blockchains, with the focus on ease of use and speed. It is a real time gross settlement system (RTGS), with a currency exchange, released in 2012.
It is also known as Ripple Transaction Protocol (RTXP) that is built upon a distributed open source Internet protocol that enables transactions in the cryptocurrency ripples (XRP).
Ripple seems to be growing and expanding in a big way. Recently, Mr. Dilip Rao, Ripple’s Managing Director for APAC and MENA, tweeted that he was thrilled to lead the new infrastructure innovation team at Ripple to engage with Central Banks and Market Infrastructures. (Source: Exploring Innovation in Payment System Infrastructures, December 20, 2017)
Zoe Cruz, who has a formidable experience of 35 years in the finance sector, joined Ripple on their board of directors. (Source: Zoe Cruz Joins Ripple’s Board of Directors, December 20, 2017) Cruz worked in various capacities with Morgan Stanley for 25 years. Before Cruz left Morgan Stanley in 2007, she worked as co-president for wealth management and institutional securities for two years. She was also in the list of Most Powerful Women by Forbes in 2005, 2006, and 2007. Cruz also founded Voras Capital Management, an investment management company, and EOZ Global. Cruz is one of the founding members of the Foreign Exchange (FX) group and has also been on the board of directors of Old Mutual Plc. Her massive experience in this sector is likely to help Ripple in a big way.
Just like Internet of Things (IoT) was realized a few years ago and is now flooded with applications, Ripple seems to be setting the trends for the concept of Internet of Value. Just like how information on the Internet moves and spreads at a massive speed, Ripple is focused on making value exchange on the Internet just as fast. As of now, foreign exchange payments take about three to five days to complete; however, Ripple aims to complete such transactions instantly and without any mediators.
More and more banks and stakeholders of many global payment systems are considering distributed ledger technology (DLT) and engaging with technology providers to be able to make the best use of it. Ripple engages with various commercial banks to incorporate production-grade enterprise systems with the help of DLT. This enables remittance payments. Major banks in emerging economies such as Axis Bank in India and developed nations such as Standard Chartered in Singapore have started sending and receiving payments through RippleNet.
Veterans like Cruz and Rao shall be instrumental in building strong ties with the financial community. Ripple has projected itself as the cryptocurrency of the bankers, and plans to grow on such partnerships.
Amid all the frenzy for Bitcoin and its variants, Ripple seems to be carving out a niche in the market, and their payment system infrastructures and platforms would perhaps be a gamechanger.