Another Prominent Banking Institution Lands Blow on Ripple’s XRP

Another Prominent Banking Institution Lands Blow on Ripple’s XRP
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These are clearly not the best of times for Ripple as it just received another hefty blow from a respected financial institution. Sopnendu Mohanty, the chief financial technology officer of the Monetary Authority of Singapore (MAS) brushed XRP aside. To the chagrin of Ripple, he bluntly stated that MAS does not see much promise in the native token currency designed by Ripple. It was later discovered that this was actually not the case. It had happened that the original reporter misinterpreted the words of Mohanty. As a matter of fact, Mohanty did not even mention either XRP or Ripple while speaking at MIT’s Business of Blockchain ceremony that was held on the 2nd of May 2019.

Ditching Ripple

The Monetary Authority of Singapore (MAS), also called the nation’s operating central bank, will not give Ripple the approval that it wants so badly. Although more financial platforms are embracing Ripple, MAS is clearly not one of them and the payment networks will either do more to impress the government body or quit the stage. None of these are easy options for the payment giant. It was reported that MAS says it is not really that impressed with the technology put forward by Ripple.

International Partnerships

The announcement came just one day following the deal between Bank of Canada and MAS to unite and improve the efficiency of cross-border transactions with the use of blockchain technology. In the deal, Singapore’s home groomed DLT-powered domestic payment network (Project Ubin) will be connected to Canada’s own experimental network (Project Jasper). JP Morgan, the American banking giant that just partnered with the new blockchain service from Microsoft was one of those who partnered with Jasper-Ubin project.

A blockchain party that does not have XRP?

The notice above raised a lot of dust in the crypto online trading floors. This was because it was very apparent that central banks and the prominent financial institutions now depend on blockchain for transactions interoperable. Ripple can amass a lot of advantages from this new development. Its payment network RippleNet has already gone beyond 200 high-profile clients. However, MAS is not charmed by Ripple’s native token, XRP.

Their official reportedly stated that it is very clear to ensure maximum efficiency for cross-border transactions, but Ripple is not going to offer them what they need. This is not the first principal blow that Ripple will be getting in under a month. Earlier on, the Japanese banking giant Resona Bank terminated its relationship with MoneyTap which is dependent on Ripple’s xCurrent. That said, banks are still very cautious when it comes to using Ripple’s new product xRapid. The interesting thing about those who want to buy XRP is what xRapid uses utilize for cross-border payments. It is not clear at this moment why Ripple is facing rejection on multiple fronts. It is also not clear at the moment whether Ripple will continue to face such snubs but with time, the trend will become much clearer.

About Ali Raza

A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.