Schwartz claimed that in spite of the fact that many banks admit being wowed by the said technology’s potential to drastically reduce transaction costs and length, they have yet to be convinced of its promise in terms of scalability and privacy — crucial factors to consider when processing payments on a massive scale.
Ripple, however, promises that xCurrent, its very own software created to address this very issue, offers an immediate settlement, not to mention that it has an immutable ‘interledger’ protocol. Furthermore, the software does not use Distributed Ledger Technology (DLT).
The chief cryptographer explained:
“What we hear from many of our customers is that it’s imperative to keep their transactions private, process thousands every second, and accommodate every type of currency and asset imaginable.”
Initially, Ripple offered many banks the archetypal blockchain-integrated payment methods, but the offer was declined, for the reason that one cannot just fit the entire world, specifically the banking industry, on the said technology.
However, a good number of banks have already tried to incorporate xCurrent for international payments, with the option to ‘eventually plug them’ into the distributed ledgers.