According to a report by Ripple, PNC one of the top ten banks in the US has revealed its plans to use RippleNet for processing international payments. The announcement for the same was confirmed by Reuters which noted that the Treasury Management unit of PNC will deploy the blockchain solution dubbed xCurrent by Ripple to speed up overseas transactions that are performed by US-based commercial clients.
Ripple said that the xCurrent platform will allow business clients of PNC to make and receive payments for each invoice that they create. The move is likely to drastically change the way the accounts are managed.
Asheesh Birla, Senior Vice President for product management of Ripple believes that the move will accelerate the adoption of Ripple products such as its blockchain solution. The news has come out as a surprise as the employees at Ripple were already skeptical of the potential of the solution as an alternative to performing international transactions. In June, Ripple’s chief cryptographer ‘David Schwartz’ commented on the capabilities of the solution saying that the banking sector will have to wait for its adoption. Schwartz said that low scalability and problems related to privacy are two governing factors in the xCurrent that may be a big issue for the banking sector.
Now, for anyone hearing about PNC making a move to xCurrent may come as a surprise. PNC has about 8 eight million clients and retail branches in as many as 19 states in the US and also listed as the top performing bank by Bankrate. PNC has reportedly collaborated with a number of global banks that are already somehow connected with Ripple. It seems like the move by PNC towards the xCurrent is a strategic move. The company has yet to confirm any of its plans with Ripple to the media as of the time of publishing.
Ripple has attracted many financial institutions over time. For instance, the company worked with American Express (NYSE:AXP) in 2017 for a dedicated app to allow American Express customers B2B transactions between Santander UK customers and US corporate customers.
In April, Ripple was again in the news when Spanish-based bank Santander developed and released a Ripple powered blockchain payment network One Pay FX. It was for the first time when Ripple got international attention. There has also been recent developments about Ripple’s native cryptocurrency XRP. Ripple is emerging as an international company with banking sector relying on it for various services.
Irrespective of the much attention that the company has gathered over the time, there are some serious concerns about the centralization of its solutions. In order to believe the comments of the company’s head, Ripple perhaps needs to ensure that its products are undoubtedly robust before introducing it into sensitive sectors like banking. The PNC bank has not yet commented on its plans with Ripple and neither confirmed nor rejected the reports altogether. But it is expected that the xCurrent once deployed by PNC is likely to gain the much-needed attention from the international market which may help the company expand its horizon globally.