In a new speech, Stanford's professor, economist and board member of Ripple, Susan Athey, analyzes the way Bitcoin, banks, blockchain and RippleNet work behind the scenes.
According to Athey, the peer-to-peer nature of blockchain and cryptocurrency has the potential to free people and businesses from costly taxes and errors inherent in the current financial system.
"So in terms of the currency's future, part of the US dollar's role has been to be a hub currency and a hub and spoke system, but with these new technologies, smaller countries do not have to go through this. hubs Anyone who travels on an airline through a hub knows that you are paying a higher price, and it can be slow, and the airlines exercise a monopoly on you when they have control of a hub, and banks and smaller countries they feel the same about their relationship with the big US banks, where they have to pay their top-ups and face delays while they overtake that system. "
As for Ripple's cross-border payment solution suite, Athey says that financial institutions are joining RippleNet to abandon the hub mentality, avoiding significant markups and delays on the global Swift payment network.
"It's a big group in the Middle East, it's also a big group in Asia, a large group of Japanese banks just joined, so many smaller countries are the first to adopt. their networks so that they do not have to go through Swift, because Swift is rather archaic and goes slowly, their message does not work very well, and then even the smallest countries feel very disadvantaged because everything goes through some big US institutions. ..
In practice, they create a peer-to-peer network that allows them to transfer money instantly to each other without having to pass it. Now, a group of these countries also uses cryptocurrency. At the moment, remittance providers are above all. So there is a company called Cuallix that is doing it in the United States in Mexico. And there is an association of 1,400 US unions that does it to help credit units gain access to international markets. And so it's coming from below, from smaller players who are not well served. "
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