A new development in the crypto world caught the attention of many yesterday when Ripple announced its partnership with the Bank for International Settlements (BIS). This partnership will see Ripple join the BIS’s Payment Interoperability and Extension (PIE) task force, a decision that offers a fascinating example of how public and private entities are navigating the burgeoning crypto ecosystem.
Ripple, known for its focus on streamlining cross-border payments, seems a natural fit for the BIS’s PIE task force. This team is dedicated to enhancing cross-border payments and meeting targets determined by the G20, a promise that carries weight given the task force’s part of the larger BIS Committee on Payments and Market Infrastructures. With 33 entities under the leadership of Ulrich Bindseil, of the European Central Bank, the task force is on the fast track to improving worldwide payments.
While Ripple’s inclusion in the task force is seen by many as a step forward, others question the underlying motives of such entities as Mastercard and SWIFT included in the task force. After all, many skeptics view these entities as fundamentally at odds with the decentralized ethos of blockchain and crypto. They wonder if large, centralized entities can truly collaborate effectively to foster improvements in a largely decentralized arena. Still, the BIS is firm that improvements to payment systems necessitate global coordination and cooperation of authoritative public entities and private stakeholders.
Meanwhile, another saga continues around Ripple; a court dispute concerning the status of XRP as a security. The SEC plans to appeal the ruling that classified XRP as not a security when sold to the public on digital asset exchanges. In response, Stu Alderoty, Ripple’s chief legal officer, has expressed confidence that the court’s decision was legally sound and anticipates its validation by the court of appeals.
However, others remain unsure, considering the future legal status of XRP as uncertain. They note that even a legal victory for Ripple may not necessarily translate into a broad-sweeping change in how the larger crypto industry is regarded by regulators.
As these developments continue to unfold, one thing remains clear: the boundaries between traditional finance and crypto are becoming increasingly porous. And while the precise nature and dynamics of these shifts are uncertain, they’re undoubtedly setting the stage for an exciting future in global finance. Whether these traditional entities can adapt and truly embrace blockchain’s potential, though, remains to be seen.
Source: Cryptonews
