An erstwhile worker of Bloomberg TV and Bloomberg Radio, Cory Johnson, has suggested that the recent delay experienced in the proposed launch of the international bank-led payment project Utility Settlement Coin is an attestation that banks need to adopt XRP for transactions.
Johnson, who is also a former Chief Market Strategist of Ripple, made the assertion in response to the news that surfaced September 9 that the bank-backed project which aims at introducing digital versions of major currencies will no longer go live in 2020.
The delay, according to the CEO of Fnality International, Rhomaios Ram, was due to regulatory approval.
However, Johnson sees it from another perspective. The former editor took to Twitter to explain that the banking sector needs the assistance of a third party like XRP to achieve a blockchain-based banking system.
The move to develop a blockchain-based banking system began five years ago by the Swiss bank UBS Group AG and Clearmatics, a London-based blockchain R&D company.
The project was initially flagged-off with the name “Utility Settlement Coin.”
In 2019, the project’s founding shareholders and partners, including Credit Suisse and Banco Santander established a company to spearhead the initiative under the name Fnality International, with the expectation of launching the digital currencies in 2020 in collaboration with 13 of the world largest banks.
However, the initiative is likely not to become commercialized any longer this year as Fnality International officials disclosed that the company is yet to receive regulatory approval and hopes to achieve it by Q1 2021.
Ripple Keeps Wooing Regulators to Consider XRP
Recall that the Ripple network has lately been wooing regulators to consider incorporating constructive cryptocurrency regulations. The San Fransisco company in 2019 published a full-page advert in the wall street journal to persuade Congress to recognize the legitimacy of blockchain and distributed ledger.
The On-Demand Liquidity (ODL) is also another move by Ripple to ease cross border payment with no need for prefunding accounts in the destination country. ODL is a cross-border payment product utilizing XRP for settlement of transactions.
ODL accepts cash in exchange for the equivalent value of XRP and then converts it back into fiat currency within few seconds in as much as there is enough XRP liquidity in the marketplace.