The cryptocurrency Ripple received a major boost recently when the major Spanish bank BBVA announced that it had been ‘very satisfied’ with the process of using Ripple to move assets between countries. The bank, which has major operations in both Spain and Latin America, noted that Ripple had made it possible to transfer money between the two regions in a matter of seconds.
A new place for cryptocurrency?
The speed at which blockchain transactions can be made is an important part of the cryptocurrency story that is little commented on. Many countries still rely on financial services infrastructure that dates from the 1970s or even earlier. This means that it can take several days to move money between financial institutions within the same country. With blockchain based technology, it is possible to perform similar transactions in a matter of seconds, as BBVA discovered recently.
The next steps for BBVA
Unlike several of its peers in the financial services sector, BBVA clearly sees a future in crypto currency and wants to be a leading player in the space. Our Genç, CEO of BBVA Compass, said: “We think something really big is happening in this sector, and we want to be at the forefront.” A successful play could catapult BBVA, which has always been something of a niche player in the US financial services sector into the public eye. While it’s not yet clear what steps the bank intends to take next in order to secure its place as a major player, BBVA is clearly a bank that cryptocurrency watchers should be keeping an eye on.
If banks like BBVA start to back cryptocurrencies, then it is likely that others will start to climb onboard. It will probably take a lot to change Jamie Dimon’s mind, but you may have just seen the first step!
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