There is an interesting future ahead for blockchain in the financial sector. However, unlocking that potential is proving to be extremely difficult. Ripple’s David Schwartz claims DLT is not ready for banking operations. An interesting comment, albeit a valid one.

The future of Ripple and finance is not set in stone. A bright correlation exists between the two camps. Even so, there is still plenty of work to be done prior to expecting any major developments. S far, it seems the Ripple team acknowledges the technology is not ready for banking needs. A remarkable turn of events, for rather obvious reasons.

A lot of Work for Ripple and Other Providers

This news comes at a curious time. Les than a week ago, the Dutch central bank confirmed the financial sector cannot benefit from blockchain its current form. The technology isn’t mature or versatile enough to power global finance. It would appear Ripple has some issues to sort out in this regard. Especially where privacy and scalability are concerned, issues remain.

Ripple’s team explained this development as follows:

“What we hear from many of our customers is that its imperative to keep their transactions private, process thousands every second and accommodate every type of currency and asset imaginable. The feedback from banks is that you can’t put the whole world on a blockchain.”

It is certainly true there are interesting possibilities to unlock. Ripple has over 100 banking clients experimenting with its technology. Some ventures are successful, whereas others show no notable improvements. There’s a long way to go for DLT in this regard. After all of the hype and speculation, it is time to show this technology’s potential rather than throwing buzzwords around.

Header image courtesy of Shutterstock

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About Author

JP Buntinx is a 30-year old FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he is working to achieve the same level of respect in the FinTech sector.

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