Ripple Takes Defensive Stand For Cryptocurrency During Blockchain Hearing In UK Parliament

The UK Parliament held a session on Tuesday during which the subject of debate was blockchain technology and cryptocurrencies. Ripple had been welcomed to participate in the session and provided a balanced view of the difference between cryptocurrency and blockchain.

Ripple’s director of Director of Regulatory Relations Ryan Zagone particularly explained how Ripple plans to enhance efficiency and transparency in cross-border payments especially those that involve banks. He stated that his company's payment solutions can deliver as much as 60 percent cost-savings.

Zagone also pointed out some of the major challenges that are associated with the current remittance system. He said in one of his statements that mailing a box full of cash would feature better tracking than when payments are sent through banks. He, therefore, argued that having the ability to track money is one of the major benefits of the technology that Ripple is offering.

Ripple found itself being the victim of criticism after Martin Walker, a former product developer for blockchain consortium R3, and the current director of the non-profit Centre for Evidence-Based Management presented an argument opposing blockchain. Walker argued that blockchain will most likely never solve the inefficiencies that currently exist in the financial sector including the products made by ripple.

Zagone argued in defense of Ripple and the entire cryptocurrency market in general. Chris Taylor, the chief operating officer at blockchain startup Everledger which keeps track of assets and Dr. Grammateia Kotsialou, a researcher at the King's College in London were part of the panel answering to a Parliamentary committee.

Walker argued against Ripple saying that its current model does not offer much other than its current SWIFT messaging system. He also pointed out that one of the toughest things about tracking payments is getting those involved in payments to be transparent about their status. Walker also criticized Ripple’s project which have been pushing for the use of Ripple (XRP) cryptocurrency, making it possible to blur the lines between cryptocurrencies within international transactions.

Mr. Walker’s arguments seemed to be focused on proving that blockchain and cryptocurrencies have been used to distract the financial and banking sector from coming up with real innovations. He thus urged the Parliamentary committee to carefully analyze cryptocurrencies and blockchain technology so as to avoid making the same mistakes that have been made before. Zagato reiterated that his company sells XRP to institutions and not retail consumers when asked whether it was designed to bypass regulations.