Ripple Discusses Digital Asset Adoption
In a recent Ripple Insights article, the company discussed digital asset adoption by mainstream financial services.
The topic was a major highlight at Swell 2018. The “800 Pound Gorilla” session moderated by Remitr CEO Kanchan Kumar focused on answering questions about digital asset adoption from the organizations which use them for cross-border payments.
Amongst those who were featured in the panel were Bittrex’s Head of Business Development Kwon Park, IDT’s SVP of Payment Services Alfredo O’Hagan, CFO of Cuallix Nicholas Palacios and Brad Ganey the SVP and COO of Catalyst Corporate Federal Credit Union.
As per the article:
“Kumar began by outlining the potential impact broad digital asset adoption could have on the cross-border payments industry. He referenced an estimated $10 trillion dollars “sitting idle” in pre-funded accounts all around the world today. He linked this figure to “the importance of digital assets” before asking the panelists what value they saw in digital asset adoption more broadly.”
Adding to it:
“Palacios responded first by saying that his company’s use of digital assets for payments came with a customer-focused goal in mind. He said that for his company, Cuallix, the focus was on “cost efficiency, time efficiency, transparency and giving our clients the best product we have.””
Discussing O’Hagan’s take, the article said:
“O’Hagan explained that like the other institutions on the panel, IDT started doing cross-border payments using the traditional infrastructure. The company started experimenting with digital assets two years ago, he explained, first settling payments to Mexico and Nigeria with Bitcoin. O’Hagan shared that when they started testing xRapid, it was clear that XRP’s speed and low cost transactions made it perfect for cross-border payments.”
“In our business, speed equals reliability. That’s the expectation with the customer. And the average speed of a transaction end-to-end was about a minute and fifty three seconds — from the moment of execution in the United States to the moment it arrived in a bank account in Mexico. That’s really just incredible.”
He concluded by saying that digital assets provide an innovative way to approach payments putting customers in the “center of the experience.”
Also Read: Ripple Discusses Regulatory Approaches
Talking about Ganey’s stance, the article said:
“Ganey said he saw potential for credit unions to provide a powerful new service to their customers. Catalyst Corporate Federal Credit Union serves 1400 credit unions across the country, many of whom already rely on wire services or products from payment providers to send cross-border payments.”
Referencing the use of blockchain and digital assets for cross-border payments, Ganey said:
“There’s tremendous opportunity. Catalyst Corporate Federal Credit Union serves all the sand states (Arizona, California, Florida and Nevada). There are a lot of migrant populations there that credit unions are serving with other products. Today, the money is going to other payment providers because wires can’t offer a very competitive product.”
Adding to it:
“On behalf of the sole digital asset exchange on the panel, Park explained that Bittrex’s goal was to be a platform that could support the best uses of digital assets and their underlying technology. Park stated that Bittrex not only wanted to help facilitate cross-border payments, but also be the place that “unlocks the value” in that business.”
“We think what XRP aims to do as a project is innovative and good for the consumer. We want to be there to support from a platform standpoint.”
The article then talked about how the conversation moved from there:
“The conversation then shifted to regulation and compliance of digital assets. Kumar immediately shared his personal belief that proper regulation of digital assets required a segmented approach, one that evaluated different use cases. He argued that regulators don’t need to worry about the use of digital assets as a payments vehicle because they are only being used as a vehicle for the transmission of value, not for speculative purposes.”
In the end, the focus of the discussion shifted to the customer again.