That’s why banks avoid XRP, according to CEO

One of the best-known players in the crypto world has faced serious challenges in recent months. The ideas of institutional acceptance were questioned and the Swift’s decision caused fierce discontent among the community. Is the end of the ripple, or are we just witnessing another obstacle?

A huge defeat, but still no worries about the wrinkle

The lack of institutional acceptance and Swift’s decision makes the air around the ripple glow. The dissatisfaction could not be ignored by the CEO. Finally, to the question of the “VET” operator of the 35 oldest XRPL Validator He gave the answer expected by many.

Brad Garlinghouse during the conversation recognizedUnpleasant Privacy features are one of the main reasons The fact that banks are not actively using XRPL solutions, despite more than 300 collaborations that have occurred over the past thirteen years.

“I asked Brad what the XRP LEDGER could lead to higher institutional adoption so that institutions can easily share trades with us.”

He asked the question, which he answered as best he could, but more tellingly: “Protection of privacy.”

The shock and disappointment of the Ripple faithful is completely understandable. Especially after the media became familiar with reliable and effective collaboration, co-founder David Schwartz boasted that he has had at least 300 banking partnerships to date have been created.

Tense situation around XRP, excessive transparency could mean the problem

The partnership between Swift and Ripple has been a big prospect for years, but with Swift’s latest announcement, you’d rather opt for a self-developed, blockchain-based main guide than an XRP competitor.

In response to community dissatisfaction Schwartz acknowledged the slow progressbut the reason for this lies not primarily in the shortcomings of the Ripple, but in the fact that financial institutions choose digital assets outside the blockchain.

This the financial giant There is a lot I don’t want to allow the anonymous validators to audit, account and price transactions.

The other major problem is the private sector characterized by Garlinghouse, or rather, the absence of it. Due to the risk of compliance and exposure, the encryption of customers and their data is essential for banks.

No organization or individual wants to complicate their transactions publicly. And the institutions’ larger movements of equipment could impact the market and the hash, leading to further disruptions and causing excessive burdens and costs.

Hope is broken, but not lost

Despite the lack of expectations The XRPL has emerged as a dominant character and innovator over the past decade. In addition to low-cost and cross-border transactions, they are active proponents of decentralized finance (Defi), while offering tokenization of real-world assets, content monetization, smart contracts, NFTs, and partnering with countries like Bhutan or Palau.

Development is apparently not being given up. For example, Credentials KYC checks are now available, allowing direct, third-party auditing of XRPL. He was hopeful and acknowledged that There have been many changes and progress made recently.

“Theoretically, institutions can then go on-chain… participate in DEX with other users of the same status, collateralize real devices in the XRPL lending protocol…”

He wrote hopefully, adding that further data protection measures and features, as well as self-sufficiency and perseverance are needed to achieve this.

Shortcomings aside, Garlinghouse sees that nothing is lostbecause while Ripple has built a robust solution and infrastructure, Swift has reached a prototype. And the market didn’t seem to panic. The battle with SEC is over and the market cap increased by 433% last year and currently stands at over $170 billion.

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