Although a majority of cynics question blockchain technology’s underlying value proposition for day-to-day living, the technology, or a semblance of the innovation more accurately, has quickly garnered adoption in the banking world. However, XRP proponents have been left asking the million-dollar question — why don’t they use Ripple?
HSBC Transacted $250 Billion Via Blockchain-Esque Tech
Earlier this week, HSBC, one of the most preeminent financial institutions on planet Earth, revealed that it had processed over $250 billion in value via a decentralized ledger (de-facto blockchain, let’s be honest). In a press release, the London-headquartered bank noted that it had surpassed the aforementioned milestone by the way of three million forex transactions, coupled with an additional 150,000 processes made on its “FX Everywhere” platform.
HSBC added that it had been using this platform, it has been able to uphold singularity, transparency, and immutability, all while optimizing its balance sheet — purportedly creating “significant efficiencies and opportunities.”
Via the release, company communicators added that HSBC’s blockchain-esque forex platform “transforms” its intra-company processes, as it automates “several manual procedures,” while also reducing HSBC’s reliance on external payment ecosystems, which may be costly and inefficient.
Commenting on this achievement, Richard Bibbey, the interim global head of HSBC’s FX & Commodities arm, explained that FX Everywhere has drastically increased the efficiency of the institution’s internal flows. Keeping this in mind, Bibbey then divulged that HSBC, valued at dozens of billions on the stock market, is currently looking into blockchain implementations into its offerings to clientele. The executive elaborated:
“Following successful implementation inside the bank, we are now exploring how this technology could help multinational clients – who also have multiple treasury centers and cross-border supply chains – better manage foreign exchange flows within their organizations.”
Maybe HSBC Should Use Ripple & XRP
Although HSBC’s adoption of blockchain-related innovations is to be commended, some have questioned why the world-renowned institution didn’t make use of Ripple Labs’ technology, along with XRP.
Some have chalked HSBC’s hesitance to a lack of trust of third parties, as hinted at by Bibbey’s statements. Others attributed the lack of Ripple adoption to HSBC’s enamorment with distancing itself with anything remotely related to crypto, save for ‘decentralized ledgers’. Case in point, in late-2018, Bitfinex, one of the world’s largest crypto exchanges, was revealed to have opened a bank account with the financial institution. As this development broke, HSBC rapidly took action, disallowing Hong Kong-headquartered Bitfinex from using its services.
Regardless, Ripple has continued to make strides. Per previous reports from Live Coin Watch, Euro Exim Bank, a lesser-known Brit-backed financial institution, recently lauded XRP. In a company statement, Euro Exim divulged that it had embraced XRP and xRapid, in an apparent bid to quell liquidity and “visibility” qualms that are present in cross-border financial processes.
Exim’s activation of this technology came alongside a post from Ripple’s company blog, which stated that RippleNet supports upwards of 200 clients.
Speaking on the matter, Garlinghouse, a technology entrepreneur with two decades in the ‘biz’, claimed that 2018 was his organization’s best performing year on record. More specifically, through the company statement, Garlinghouse explained that Ripple saw its customer base swell by 100 clients in the year prior. The company chief even quelled concerns that growth has slowed, noting that Ripple continues to sign “two — sometimes three — new customers per week.”