Analysts at Ernst & Young (EY) believe Ripple could put “competitive pressure” on India’s traditional banking system as it makes payments faster, cheaper and more transparent.
Traditional Indian financial institutions may face “competitive pressure” from blockchain platforms, including Ripple, in cross-border payments, according to a report prepared by analysts at Ernst & Young for the Competition Commission of India. The report notes:
“In theory, once blockchain applications have passed the pilot and proof-of-concept stage, they will compete with other systems and technologies that provide similar services. This is already happening to some extent in the financial services sector. An example is the cross-border payments market, where traditional banks may have to compete with solutions like Ripple. ”
Analysts suggested that because Ripple is faster, cheaper and more transparent, the technology could put “competitive pressure” on India’s traditional banking system. According to Ripple, the company offers services in 55 countries. This spring, the company also began testing a closed version of the blockchain that will provide central banks with a secure, controlled and flexible solution for issuing and managing government cryptocurrencies.
The authors of the report noted that in India, cryptocurrencies “have received a lot of regulatory attention over the past few years, culminating in a recent recommendation by an inter-ministerial committee to ban the trade and storage of cryptocurrencies.” We will remind that recently the Minister of Finance of India said that the new regulation will protect investors from the volatility of crypto assets. According to experts, the government may propose a mechanism for the emergency stop of trading.
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