U.S. politician Greg Kidd has proposed a new banking charter aimed at providing banking licenses for digital-native firms like Ripple. This initiative could reshape the financial system.
Vision Behind the New Bank Charter
Greg Kidd, co-founder of Haka Yaka Ventures and owner of Vast Bank, emphasized the need for a specialized banking structure for digital companies. The charter would eliminate traditional requirements for physical branches and lending practices, streamlining the licensing process for digital-first businesses.
Need for Change in the Banking System
In an exclusive interview with journalist Eleanor Terrett, Kidd underscored that the existing banking system is overly restrictive and doesn't support innovation. He stated, “The cost of processing payments on the XRP Ledger is nearly zero, which means the cost of sending money should reflect that.” This initiative is aimed at providing more freedom for new players in the financial market.
International Expansion Plans and Challenges
Kidd plans to invest in international banks, including the Bank of London, to integrate various currencies onto blockchain platforms. He envisions a banking ecosystem where digital currencies and traditional financial systems coexist. Kidd also criticizes the current system where only a few can secure banking licenses.
Greg Kidd’s push for a new banking charter could be a turning point for Ripple and the broader crypto industry, opening opportunities for digital companies in the banking sector.
