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We will not use Blockchain until other banks will not use ripple

Taavet Hinrikus TransferWise ripple of blockchain

Important money transfer service TransferWise has indicated that despite the excitement of Ripple's global payment solution growth, it has not yet found a convincing case for the use of blockchain technology to carry out its business. Recently speaking with Fortune, TransferWise president and co-founder Taavet Hinrikus said that although there is a lot of excitement about the possibilities created by the blockchain, its operational realities present a new set of challenges alone.

Excitement against reality

Speaking of a new episode of Fortune's "Balancing the Ledger", Hinrikus said that TransferWise, based in London, which currently transfers money to more than 70 countries, supports the idea of ​​online blockchain transfers. in principle, but which are now more complicated to manage than the existing structure. As a result, the company, which subtracts SWIFT from processing high-speed cross-border transactions for a commission of 1.5 percent, sees little advantage in adopting the blockchain technology in the short term.

Explaining why this is, he said:

"We've heard this dream many times from different people, but if you start digging into it, you realize it may look fantastic on paper, but actually, to make use of it, it's really difficult. we have still found nothing that allows us to do what we do in a cheaper or faster way ".

In part because of fintech companies increasingly looking for new ways to get around the expensive SWIFT network, blockchain transfers are becoming less competitive than other emerging alternatives. The Fintech companies that take into account the implementation of blockchain frameworks now require ever more significant increases to make the transition useful, he said.

Not impressed by Ripple's current partner network

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Source: Shutterstock

According to Hinrikus, TransferWise examined Ripple's high-speed cross-border payment solution, RippleNet, and found no compelling reason to use it in consideration of its current level of adoption.

Explaining why this is, he noted:

"If all the banks in the world were to pass through the Ripple network, it would be surprising, yet, how many banks are using Ripple in production today?" It's a very short list, so we're big supporters of Ripple or anything else … if any of these have enough adoption, and in reality it helps us materially to do cheaper and faster things, we would like to, but so far we have not found one ".

In June, CCN reported that Western Union CEO Hikmet Ersek expressed a marked lack of enthusiasm over a potential shift to Ripple after the company carried out an XRP test run. Ersek said at the time that the results of the study showed no real cost savings to justify the revision of the existing system to use XRP for settlement of cross-border payments.

Featured image of TechCrunch / Flickr

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