Embracing change is difficult, but it is what we have to do in order to move forward. One such change that the world is currently warming up to is Ripple technology. Bridging the gap between traditional finance and blockchain technology, Ripple has been successful in making a lot of flurry in Asia. And now, the technology is all set to take over the Indian subcontinent.
According to latest developments, National Payments Corporation of India (NPCI), a Mumbai-based startup closely guided and promoted by the RBI and the Indian Banks’ Association (IBA) as an umbrella organisation for all retail payments across India and credited for making the UPI app, is the one that is most likely to bring Ripple to India.
For the uninitiated, Ripple is a distributed financial technology that enables banks to send real-time international payments across networks. It has become a major hit in a short period of time because it helps banks meet growing demands for faster, low-cost, on-demand global payment services for any payment size and results in new revenue opportunities, lower processing costs, and better overall customer experiences.
Ripple’s solution is built around an open, neutral protocol (Interledger Protocol or ILP) to power payments across different ledgers and networks globally. It offers a cryptographically secure end-to-end payment flow with transaction immutability and information redundancy. Architected to fit within a bank’s existing infrastructure, Ripple is designed to comply with risk, privacy and compliance requirements.
Post demonetisation, digital payments in India has seen a massive surge. However, even now, these solutions are laced with archaic technology and solutions which can’t accommodate the growing demand. This is where something that has blockchain technology at its heart can come to help.
In addition to NPCI, several Indian banks are also said to be involved in talks with Ripple for bringing their technology to Indian land. The main aim is to make global account–to-account transfers safer and faster than ever. What makes Ripple all the most interesting is the fact it works without being a part of a payment network.
Any institution interested in Ripple can hook into its technology and take advantage of its real-time global transfers. It is quite obvious why the technology has gained the interest of Indian banks.
Ripple is a venture-backed startup with offices in San Francisco, New York, London, Luxembourg and Sydney.
One will have to wait and watch to find out if Ripple garners the same success in India as it has been able to achieve in Asia.
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