Cryptocurrencies were created in 2009 after the birth of Bitcoin (BTC), with the intention of serving as an alternative to financial markets and traditional banks, but lately there has been a paradigm shift where many banking and financial institutions from the traditional world they have given him the right hand and have relied on cryptocurrencies and Blockchain technology to improve the banking system, and at the same time, the creation of new cryptocurrencies that seek to try to enter the traditional financial market. The most emblematic case is that of Ripple (XRP).

Many people (even within the community) have been eccentric about Ripple being “under management” of the financial institutions from which they so much want to escape, even if in structure a decentralized payment platform. The fact is, that Ripple has been very useful to all the banks with which it has been associated, since it allows sending almost immediate transactions, skipping commissions, through an optimal security system.

The Ripple cryptocurrency, also known as XRP, is a virtual real-time payment system based on Blockchain technology. It allows the conversion between different currencies and cryptocurrencies in real time. These two qualities make financial institutions use XRP as an alternative to their traditional support systems.

In addition, Ripple has changed his speech in recent months, the members of his team have expressed every time they have the opportunity that Ripple can easily adapt to the different regulations in the world, so that their clients can still enjoy the cryptographic services, partly thanks to xRapid and xCurrent, two solutions that crypto company offers, do not use the XRP Token directly.

This can be evidenced by the recent association of Santander and 13 banks (Bank of New York Mellon, Barclays, CIBC, Commerzbank, Credit Suisse, ING, KBC Group, Lloyds Banking Group, MUFG Group, Nasdaq, Sumitomo Mitsui Banking Corporation, State Street Bank & Trust, and UBS), creating “Fnality”, which was founded to establish a network of decentralized Financial Market Infrastructures. Fnality will create a cross-border settlement framework among participating banks using a “USC” cryptocurrency linked directly to the value of fiat currencies, these crypto-active assets that do not vary in price are known as Stablecoin within the crypto ecosystem.

Numerous statements have been made by different representatives. On this occasion, Hyder Jaffrey, head of investment strategy at UBS Fnality, said that these cryptocurrencies could completely eliminate settlement risk, counterparty risk and market risk. In turn, he pointed out that all these factors are those that cause inefficiencies and losses to the traditional market in which most operations are carried out.


Fnality International, led by Rome Osram, CEO of Deutsche Bank, is studying the digitization of several popular legal tenders. Fnality’s main objective is to build versions of the US dollar, the Canadian dollar, the euro, the pound and the Japanese Yen based on the interbank blockchain.

Although Mr. Ram’s idea was originally introduced as a public service settlement (USC) token, the project is now called Fnality International. Fnality is the result of a series of capital fundraising, valued at approximately £ 50 million (£ 50 million). In theory, the basic concept of the digital legal currency is that the token will be used for daily operations, while the legal currency stored in the central bank will be compatible with all issued tokens.

Clearmatics, which recently joined Post Oak CEO Tim Swanson, is Fnality’s leading technology partner, which means that the two companies can jointly develop utility billing tokens. However, making digital tokens for all these currencies is an ambitious goal, and many unknown factors have paved the way.

The USC concept of Fnality is another addition to the class of potential competitors of Ripple. The basic thesis of what the consortium is trying to achieve closely resembles what Ripple has been trying to sell to banks around the world.

In general terms, the creation of new cryptocurrencies that can count on the investment support of already known and trusted financial institutions is a huge inclusion for the crypto community. It is hard to imagine that banks will disappear overnight because of cryptocurrencies, however, there is no reason why the financial system cannot take the next step in technology. Even many policies could shift to a more decentralized and efficient environment for companies and large investors, as it has been with Ripple.

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