On September 21st, Finextra research published a clip on their official Youtube channel where Marcus Treacher explains where the blockchain technology fits in the traditional payment industry. Treacher is the Head of Global Strategic account at Ripple.
Emily Howler of Finextra hosts the interview. She asks Treacher to explain how the distributed ledger technology helps address some of the challenges faced by cross-border payments service providers.
Ripple Explains International Payments Solution
In response, Treacher says the distributed ledger technology enables payments that go across borders to connect in the same manner as payments that move around within a country. So this represents a significant shift in how the technology is enabling payments to happen around the world.
By doing this, the technology is helping eliminate chasing and reconciliation work and lack of clarity that has existed across cross-border payments for years. And this is where its real power resides.
Treacher then goes on to explain why blockchain technology is an excellent complement to the existing payments markets infrastructure. He adds that the existing infrastructure is set up for governance, control, standards, and oversight. Also, it interacts with regulators especially anti-money laundry compliance which is necessary, and this makes it robust.
So, the blockchain compliments this infrastructure by offering a much better delivery layer. And a platform where everything that is running on it gets significantly upgraded. Treacher adds that this makes it the ultimate Intel inside the international payments world.
The Ripple official also touches on how the PSD2 would revolutionize the financial world. PSD2 stands for Reversed Payment Service Directive. A regulatory framework released by the European Union which will help open up the market to new investors and companies.
Some experts believe the implementation of PSD2 will pressure banks to make transactions faster. It will also reduce their monopoly in the financial space.
“With distributed ledger technology, the likes of Ripple will make it easier for banks to run at the same pace as that of other organizations.”
Even though this piece of news appears to be from the archives, it’s no doubt that financial institutions have found the technology offered by Ripple to be favorable.
Currently, the platform has over 100 customers with the majority of them being big-name financial service providers.
Want to learn more about Ripple? Make sure to check out our Ripple price prediction.
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology