In a world where payments are required everyday, giving people access to fast and easy payment systems will give any business an edge over others in this industry. This is why companies like Ripple and Stellar are focusing on making international payments seamless and attract as many people as possible until they achieve mass adoption. Well, Ripple may be adding another strong member to its portfolio of people who use its technology.
ECB And TAS Group May Be Using Ripple’s Tech To Launch TIPS
The European Central Bank has just announced the launch of its international payment technology called TIPS. TIPS is an acronym for Target Instant Payment and it is a fast and efficient payment system developed by ECB. The idea is to offer users cheap instant payment settlements in Euros on a global scale. All customers of Eurozone banks will have 24 hour access to TIPS.
Not everyone thinks this is a good thing as many people in the cryptocurrency industry believe that this technology is going to affect the growth and development of cryptocurrencies. They feel the traditional financial institutions have identified the challenges cryptocurrencies face and are taking action. This may not be the case as this payment system may boost the cryptocurrency industry.
Some cryptocurrency experts believe that the launch of TIPS is going to be a good thing for the industry. It could especially change the game for Ripple’s technology if the ECB decides to implement it. Technology like xRapid, xCurrent and xVia can be integrated to TIPS in the future. If one or all of these technologies are used by TIPS, the industry will certainly benefit from it.
How It Works
TIPS is similar to Ripple’s xCurrent. It allows financial service provides to enjoy liquidity in the national central banks. It is this liquidity that they can use to settle instant global payments. The processing time of each transaction will not be higher than 10 seconds. The ECB has already made scalability provisions available so that the system will meet the growing user base.
In Europe, there has been an increase in the number of payment platforms over the years. Because they were too many and they didn’t interact with each other, the whole thing became a mess. TIPS was created to solve this problem. Benoît Cœuré an executive at ECB said:
“There is often a risk of a new fragmentation being created from the development of closed-loop or national solutions that aren’t interoperable in the euro area. So, the best way to counter this risk is to launch a pan-European instant payment system.”
Ripple has already entered a partnership with TAS Group. They have been working together for over three years. So, there is every possibility that TIPS is going to be powered by Ripple’s technology in the future. TAS Group has strong partners in Europe. They provide business innovation solutions for banks and other financial institutions across Europe.
Ripple, is still busy with its projects to facilitate a seamless global transition from traditional payment systems to blockchain based systems. According to Brad Garlinghouse, the company is creating an API that will help Ripple connect with new platforms.