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In my previous post I’ve wrote about the Banks and Blockhain and how they are considering to embrace this new technology. But if you look in the near past just two years ago, you will see how all the banks are against anything that is related to Bitcoin and Blockchain. It is funny how we as humans for something that is new and something that we don’t know it, right away we put our defense shield. We don’t want to hear about it. We see it as a threat. Usually there is a very small number of people who are open minded to see what the new thing can do. Maybe because we were raised like this, not to believe anyone, not to believe anything new that you see and simply don’t talk to strangers. Same happened with the banks. The first thing they’ve saw in Bitcoin and Blockchain was a threat. A threat that one day can shut them down. They’ve started to talk negative about the all the Crypto World. But as time goes by they realized the potential this technology has and slowly to embrace the cryptocurrencies.
Are they doing this on purpose, just to make more profits? The answer on this question, we can’t know for sure.
Anyway let’s get back to today’s article and have a look at how lately the Big Banks are warming up for some of the Cryptocurrencies like Bitcoin and Ripple.
The big banks want to crush Ripple and Bitcoin. At least that is the impression that you are getting if you listen to speeches of high profile bankers. For example last year J.P. Morgan & Co. leader Jamie Dimon called the digital currency a ‘’fraud’’. And there is a good reason behind all of this. Every cryptocurrnecy is in competition with the banks, especially Ripple. If you are following my articles regularly, I wrote one article ‘’Types of Cryptocurrency’’ where I have named the top 5 cryptocurrencies. And Ripple is one of them.
And why is Ripple their biggest threat? Simply because Ripple as a technology has a dual function: digital currency and digital payment network for financial transactions and it’s using a middleman.
Ripple operates little bit different from the other cryptocurrencies, on an open-source and peer to peer decentralized platform, which platform allows transfer of money in any form, both flat and cryptocurrency. Ripple as a coin acts like a bridge for other flat and cryptocurrencies.
And also Ripple does improve some features of traditional banks. The transactions are completed in seconds within the ripple network. The transfer fees are also very small due to traditional banks.
Ripple is seen as a direct competitor to banks. While in the other hand Bitcoin is not seen as same threat because operates more like a currency.
There are signs from some banks that are warming up for the idea of accommodating Bitcoin transactions. Some of this banks are even encouraging the use of Bitcoin, by allowing transfers to and from exchanges (with bank accounts, not with credit cards).
They could do the same for Ripple because can be very valuable to them. Ripple offers a viable blockchain solution and an enormous amount of utility to banks.
Are the banks going to crash Ripple or Bitcoin? Not necessarily. As you’ve seen in the previous article how the banks are actively working and developing their own blockchain solutions, I think that it takes more time for the banks to come to the idea of relying on a cryptocurrency and the industry to be more established. For sure the banks are keeping a close eye on Ripple. For this things to happen it needs more time. It can’t happen overnight. Same like with everything in life.
Until the next post, be cautious if you are thinking of investing in the cryptocurrencies, because still they are very speculative and unstable.
Thank you for reading
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