Key Takeaways
- A former Congressional candidate is drafting a digital-only bank license that would enable companies like Ripple to become certified banks.
- Ripple has already aligned itself with central banking systems, and it strives to enhance cross-border payments.
- Ripple and the SEC recently submitted a settlement motion together, and according to attorney John Deaton, there was a 70% chance of approval.
Rumor has it that Ripple could soon obtain a banking license and fully transform itself into a fully-fledged bank.
According to a statement by American politician and former Congressman Greg Kidd during the recently ended XRP Las Vegas Conference, a newly proposed digital-only banking license could create a path for companies like Ripple to become licensed toward the digital finance sector. While Ripple hasn’t confirmed or denied considering such a move, the rumor highlights Ripple’s evolving role within the global financial system.
Entry Point for Blockchain Firms
Speaking to Fox News Business Journalist Eleanor Terrett during an interview on the sidelines of the conference, Kidd stated that the proposed digital-only banking license would focus on issues surrounding payments and deposit-taking. He revealed that the bill’s framework was designed to reduce entry barriers for fintech companies, remittance services, and even large retailers that want to transact in the banking space.
While Kidd stated he wasn’t speaking on behalf of Ripple, the proposed charter, if it were to see the light of day, could end up becoming an entry point for blockchain firms and other related companies. The charter, he stated, would enable Fintech firms to acquire a digital-only banking license tailored to their type of business, which would allow them to offer core financial services without assuming the full regulatory burden of traditional banks.
Open the Field to Greater Competition
According to Kidd, the owner of Vast Bank and co-founder of Yaka Ventures, who seeks to disrupt the monopoly by old-style financial systems, his proposed charter would open the field to greater competition and introduce new systems that would practice based on innovation and inclusion. Kidd, who also goes by the title “JacktheRippler” on the social media platform X, compared to existing payment systems; sending money using the proposed charter would be cheap and ubiquitous. Kidd opined that the absence of regulatory progress had meant that only a small group of people were able to acquire banking licenses under the Biden administration, including himself and Jackie Reses of Lead Bank.
Conclusion
Since Ripple hasn’t commented on the proposal regarding the digital-only banking license where their name was mentioned, some observers believe that the silence could be part of a strategy. The company remains entangled in a yet-to-be-concluded legal battle with the US Securities and Exchange Commission (SEC), whose outcome could offer legal clarity to the broader cryptocurrency market. According to John E. Deaton, one of the most prominent attorneys within the XRP legal community, the likelihood of Judge Analisa Torres accepting the settlement was 70%. Whether or not it becomes a licensed bank, Ripple is shaping the future of digital finance.
Frequently Asked Questions
Did Ripple win the SEC case?
In July 2023, Judge Analisa Torres ruled that secondary sales of the XRP (XRP) token are not securities, granting Ripple and the crypto industry a partial yet major victory.
Can Ripple XRP reach $50? If yes, by around what time?
According to crypto analysts, it’s possible for XRP to ever hit $50. However, it’s unlikely for this to happen in the next 10 years.
Is it worth investing in XRP now?
XRP has advanced 13% year-to-date. It currently trades at $2.30 and has a market value of $135 billion as of June 10. However, at least one Wall Street analyst believes the cryptocurrency will be worth significantly more in three years.
