The ripple effect: R3 and XRP in payments trial

October 20th, 2016

“It is what you don't expect... that most needs looking for.”
– Neal Stephenson, 'Anathem'

This is a first: R3 is working with a publicly traded digital currency.

The blockchain consortium announced today the completion of a series of trials involving 12 of its member banks. The goal itself – streamlining international payments – is not new. The method employed, however, is innovative in that it uses Ripple’s digital currency XRP as an alternative.

Unlike most trials in this space which rely on blockchain technology, this collaboration focuses on the possibility of integrating alternative virtual currencies into the payments system. Using XRP would, in theory, reduce the need to tie up local currency funds in bank accounts around the world, by acting as a substitute and covering shortages.

Could this herald a new approach to implementation? We've already seen some banks experiment with public blockchains. Using established systems opens new questions, and new possibilities. (Read the full story.)

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