Ripple and a dozen Central Banks met at Carnegie Hall in New York City to discuss about possible solutions and implementations of Blockchain Technology in the payment industry. The intention is to explore the new fintech technologies in order to enable the next generation of payments.
The International Monetary Fund (IMF) was present in the meeting and opened the summit with a presentation about the fin-tech and blockchain potential in the banking sector.
“As fin-tech innovations gather pace, boundaries are blurring between intermediaries, markets, and new service providers. Barriers to entry are changing, being lowered in some cases but increased in others, especially if the emergence of large closed networks reduces opportunities for competition; but trust remains essential,” the FMI staff read for the audience.
As Ripple was hosting the event, its CEO Brad Garlinghouse gave a speech to the public. “The summit provided an opportunity to explore the full payments landscape: central banks’ domestic trials, Ripple’s growing cross border network and interoperability across systems. Together, these form the beginning of an Internet of Value, where payments move as easily as the data across the internet,” Mr. Garlinghouse said.
Internet of Value – What is it?
According to Ripple, value should be exchanged as quickly as information moves on the internet. At the moment, international payments are difficult to perform, they have high fees and they can take several days in order to be performed. With the Internet of Value, international transactions could happen instantly. But Internet of Value incorporates not only money, but also stocks, votes, frequent flyer points, securities, intellectual property, music, and much more things.
All of this can be performed and developed with the Blockchain technology. In order to implement Internet of Value, industry standards must be adopted in order to homogenize the world’s different financial systems.
The Summit explored central bank’s experiments regarding the blockchain technology for domestic payments. The adoption of blockchain for domestic payments may not be available for the whole world. The optimal solution depends on the plain points and features needed in each market, which can vary greatly by country. Interoperability between systems became a key focus area and the impetus of Ripple’s own work on Interledger.
New technology is spreading around the world. This is modernizing the way we process payments and transactions. Here is where the Internet of Value appears with its potential future development.
“These blockchain conversations have been happening in isolation. The value of the Central Bank Summit was in exploring and connecting these efforts, as together they create the next generation of payments,” Garlinghouse concluded.