In a panel discussion with representatives from KPMG, Starling Bank, Microsoft and HSBC, Marjan Delatinne, head of global banking at Ripple, spoke about the digitalisation of banking.
Delatinne, who is responsible for communicating with banks at Ripple and making sure banks understand Ripple’s technology and the blockchain in general, explained that some of the largest banks in the world are preparing to own and trade digital assets.
Delatinne explained that the banking system is far too slow and inefficient in processing cross-border payments, with its current infrastructure. Banken are beginning to see the value of the blockchain technology in her experience. As many Ripple customers have already realized, Ripple and its technologies can reduce operating costs on the one hand, and accelerate scaling on the other:
“Our contribution to this digital era is building an infrastructure that helps financial institutions get closer to this reality of instant and convenient [payments]. When you look at the aging infrastructure that is in place today in order to transfer money around the world, this is very close to a fossil system. There is a trust established between members of these systems, but you still have a lot of inefficiencies in terms of the cost.”
“Our customer base realizes and recognizes inefficiencies and they look at the blockchain as a technology that can inherently diminish the operational cost and speed up the scale-up to bring new services in competition with established organizations.”
Corona Pandemic to Accelerate Transition to Digital Society
Like Navin Gupta, Ripple’s South East Asia Managing Director, she underlined that the corona pandemic will accelerate the transition to a digital society. The pandemic has cut cash use significantly, Delatinne said:
“There are different layers, and the real consequence of Covid-19 is the fact that the use of cash is declining because of health issues. If this trend continues and you need to somehow ship money somewhere, you’re going to see banks are going to have more pressure on them to get to the more digital world, and it’s pushing banks toward this digital world.”
She also spoke of the ongoing global trend for central banks to examine and test digital currencies (CBDCs). She has explained that some countries are more advanced than others, citing France as a prime example and the digital euro test.
At the same time, she stressed that there must be a bridge between the different currencies of the digital central bank, since they lack interoperability themselves. Ripple’s XRP token, Delatinne says, is predestined for this:
“How this will work in terms of interoperability between each of them in the more international worlds, that’s probably going to be the digital currencies like XRP which can play a role in terms of playing a bridge between multiple or different CBDCs. I think these trends will continue and be reinforced in the coming years.”