The document also indicates that Ripple suggests that new systems should explore leveraging digital assets as a liquidity or settlement tool, especially for cross-border transactions.
On December 13th, 2018, Ripple submitted a proposal addressed to US Federal Reserve named ‘Potential federal reserve actions to support the interbank settlement of faster payment‘.
According to the document, the digital era has fundamentally changed the nature of everyday interactions and commerce. A gap has emerged between the capabilities of traditional payment methods and the payment capabilities expected in the digital era – fast, convenient, accessible.
The submission suggested that faster payments address this gap by allowing payments to be sent and received immediately, and at any time.
The Federal Reserve and the payment industry have been working together to determine the best path forward, such that the benefits of faster payments can be enjoyed broadly by the public.
Federal Register Notice names faster payments in the United States through the facilitation of real-time interbank settlement as the main objective of the submission.
Ripple Sees Great Potential Leveraging Digital Assets:
The document also indicates that Ripple suggests that new systems should explore leveraging virtual assets as a liquidity or settlement tool, especially for cross-border transactions:
“By leveraging new tech the U.S. can position itself to best meet not only the needs of the market today, but also the quickly changing expectations for payments in the future.”
By submitting the proposal Ripple urges the Federal Reserve to publicly disclose its expected future role in payments in the near future to give the market greater certainty in planning its strategic investments:
“The market will hold off on making investments and decisions until it has a greater certainty of the Federal Reserve’s role in payments.”
Ripple is on a Roll:
Despite the uncertainty regarding the future of interbank settlements in U.S., it looks like Ripple has enough work abroad as recently the National Bank of Kuwait (NBK) enabled RippleNet’s blockchain technology to be used for online banking.
Aside from this, PricewaterCoopers indicated that more banks would foray into the cryptocurrency space in the upcoming years.