Analyst: Fed May Use Ripple for India Payments

 
Florence Muchai
Written By 
Florence Muchai
 
Harsh Chauhan
Edited by 
Harsh Chauhan
August 29, 2024

Ripple has been at war with the United States SEC, but it could be the solution that the American financial industry needs. The US Federal Reserve has expressed concern about the growth of fast payment systems, particularly those that link to foreign networks to make global payments.

Ripple’s XRP could make a home in India

Christopher J Waller, a member of the Federal Reserve Board of Governors in the United States, stated on Wednesday that the interlinking of payment systems could end up in legal issues that increase compliance for the network’s banks. 

Speaking at Global Fintech Fest in Mumbai, Waller said, “There is no silver bullet that increases speed and efficiency without trade-offs. Unless new solutions are found, interlinking fast payment systems might increase the risk-management burden for banks participating in them.

Analysts say the problem both nations face has a solution in XRP. In 2020, Ripple won a patent for a design that can execute smart contracts based on data collected from the outside world.

These smart contracts can automatically settle options contracts when pre-agreed conditions are met. Gregory Tsipenyuk, a Ripple software engineer, published a proposal titled 0045 XLS-45d Price Oracles on GitHub. 

Gregory proposes implementing native on-chain oracles for XRP Ledger. With these oracles, XRPL, like other blockchains, is ready to accept “real-world data, for instance, market prices, exchange rates, interest rates, or weather conditions onto the blockchain.”

The platform for XRP’s use in China has already been set in stone. In 2017, Google-backed payment company Ripple was in talks with Indian banks and the National Payments Corporation of India (NPCI) about facilitating global -to- transfers without the need to a payment network.

Axis Bank and Yes Bank were the first Indian institutions to Ripple, which now has over 75 customers globally. That same year, the Federal Reserve published its Faster Payments Task Force’s action plan for bringing faster payments to the United States, highlighting XRP’s abilities to power the next generation of cross-border payments.

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Florence Muchai
Written by Florence Muchai

Florence Muchai is a crypto journalist at CryptoNewsZ with four years of experience covering Crypto, Blockchain, Web3, NFT, and AI. She has written for MSN and CryptoPolitan, bringing a wealth of knowledge to the industry. Florence holds a Bachelor's Degree in Disaster Management and International Diplomacy and a Master's Degree in Clinical Psychology. She is a digital nomad and explores the intersections of decentralized and traditional finance, offering insightful analysis on wealth creation, financial literacy, and the evolving digital economy. She is ionate about empowering readers with knowledge and delves into emerging trends, regulatory developments, and the impact of blockchain on global finance.