Swift's Chief Innovation Officer, Tom Zschach, voiced doubts regarding Ripple's influence on the financial system. He emphasized the importance of neutral governance and trust in the financial sector.
Neutrality, Governance, and Trust
In his recent social media post, Zschach explained his vision of 'neutrality' in the financial sector. He indicated that neutrality isn't about how many nodes are run, but about whether outcomes are fair, enforceable, and trusted. Zschach also stated that Swift is capable of complementing open and permissionless blockchains by bringing 'governance and trust.'
Banks Comfortable with XRP Token?
Zschach also expressed concerns about whether banks would feel comfortable using the XRP token, as it is not regulated money and not on the bank's balance sheet. This creates enforcement issues in case of disruptions, and final settlement is not guaranteed. According to him, banks are unlikely to pay an extra toll for using external assets when they have stablecoins and tokenized deposits.
Critique of Ripple Oracles
In conclusion, Zschach noted that if tokenized deposits and regulated stablecoins scale, banks would prefer to settle directly in instruments they already control and trust.
Discussions surrounding Ripple and its impact on the financial system continue to spark debate. Zschach's statements underscore the importance of governance, trust, and neutrality in modern financial technologies.
