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Ripple Inc. has done well to focus on lifting the banking sector from the impact of the last financial crisis that has pushed banks to struggle to stay afloat. The liquidity challenge faced by banks especially when it comes to interbank transactions is now a thing of the past with Ripple's decentralized financial instruments.
Banking is a very competitive business conducted in a hectic environment. It focuses on individuals, government and businesses as banks control a larger portion of national wealth. However, many challenges have prevented banks from functioning as expected, pushing them into institutional difficulties and financial crises.
In banking history, the 2008 financial crisis was a major shock on the global financial system that almost reduced it to the brink of collapse. One of the largest financial institutions, a Wall Street investment bank, Lehman Brothers, began with bankruptcy. This led them to declare bankruptcy on September 5, 2008. In one day, £ 90 billion was lost by one of Britain's largest companies. The then president, George W. Bush, declared that there was no bailout for Lehman Brothers, this started the banking crisis.
Since 2008, the banking institution has not completely recovered from the effects of the crisis, it continues to persist. Banks have shrunk, the business environment is not as robust as it used to be, the system needs help. The only way out is to launch the banking system in a completely different system and this can only be achieved through blockchain technology.
Ripple decentralized financial instruments appear to be the answer to the banking recovery from the effects of the past financial crisis. The financial instruments are xRapid, xCurrent and xVia. These decentralized financial tools created by Ripple allow banks to execute transactions faster, at a lower cost. Banks will be able to maximize profits by saving costs and making services seamless for customers.
Ripple xRapid is used to solve the liquidity problem for customers of banks that own XRP, helping to minimize costs. xVia is used by banks as a link for payment transactions between banks and other payment platforms. xCurrent is used to track cross-border payment, allows communication between banks before and after a transaction. This is perfect for international business, business and projects.
Banks and other payment platforms have become aware of the usefulness of these tools, so many have signed with Ripple. The report shows that some big banks are already collaborating with Ripple, with so many other membership projects.
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