Ripple top official: Traditional regulatory framework can fit on top of Distributed Ledger
Patrick Griffin, the EVP of Business Development at Ripple spoke about Distributed Ledger Technology [DLT] with Finextra, a crypto-media channel.
Here, the Ripple official stated that scalability is a huge problem in the cryptocurrency space, including Bitcoin [BTC]. He also conveyed that a regulatory solution for the technology is to implement the traditional financial regulations on top of Distributed Ledger as well.
The expert began by saying that scalability is the elephant in the room and causes real limitation in a lot of systems, such as Bitcoin and compared it with services like VISA and MasterCard. He added:
“When people talk about Bitcoin, this is a system that can only handle about seven transactions per second when compared to Visa or MasterCard, which are handling tens of thousands of transactions a second and at over capacity.”
He also spoke about the regulatory framework implemented on these traditional payment systems. According to Griffin, the existing compliance and regulatory regimes are largely intact even on the consumer-merchant level for cross-border remittance. He said:
“The protections that have been put in place today fit nicely on top of this infrastructure and this infrastructure is really just about facilitating settlement and clearing out obligations and removing exposures and credit that are incurred over the course of payments,”
Subsequently, the finance official implied that he finds it exciting and promising that new regulations are not required in case of this technology. However, Griffin stated that this is just one approach towards the regulatory frameworks in the space.
Recently, an official from Banco Santander spoke about its partnership with Ripple. He stated that his company aims at improving and enhancing the international payment scenario by joining hands with Ripple. He explained that working with Ripple will help them achieve the motive of customer trust, transparency and accountability for the service cost imposed on the consumers.
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