Ripple is a potential competitor to the global traditional banking system according to a report on blockchain technology by the Indian Competition Commission (CCI).
Ripple Benefits Compete with Traditional Banking Systems
The report indicated that blockchain (DLT) is a technology that is expected to bring potential benefits in many areas such as healthcare, insurance, government, BFSI, human resource management, etc.
However, the report indicated that once the blockchain is integrated, DLT-based solutions will compete with those that offer similar services but are not based on DLT. This competition has already started in the area of cross-border payments.
Such payments on the blockchain platform are faster, cheaper and do not require an upfront capital injection. As a specific example, the report mentions the Ripple blockchain behemoth in San Francisco, which uses XRP to provide wire transfers and cross-border payments.
“An example could be the market for providing cross-border payments where traditional banks may have to compete with solutions such as Ripple, which is a blockchain concept-based tool that enables users to make cross-border payments in various currencies.”
The author of the report specifically emphasized“Ripple may put competitive pressure on the traditional banking system given that it is faster, cheaper and transparent.”
SEC’s Legal Action Against Ripple Threatens the Future of the U.S. Crypto Industry
crypto influencers and experts have publicly emphasized the importance of the U.S. crypto field developing seamlessly and creating a digital dollar as quickly as possible.
These experts pointed out that China has been testing the digital yuan (DCEP) for some time. This will be the first CBDC initiated by a leading country, and they fear the United States could lose its leadership position in finance and technology.