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In a recent tweet, Kyren, a well-known former banker, shared his insights on the disruptive potential of XRP in the world of payments.
Drawing from his four-year experience in the banking industry, Kyren highlighted the inherent issues within the legacy finance system and why he believes XRP would disrupt the sector.
🏦I worked in banking for 4 years
Not the longest by any means, but more than enough to see the issues with legacy finance
• Process Payments
• Execute Payment Ledgers
• Maintain Accounts/BalancingHeres why I think $XRP & $XLM etc will DISRUPT payments
As we all know,… pic.twitter.com/1jmV5OyhJQ
— Kyren (@noBScrypto) October 4, 2023
Why XRP Will Disrupt Legacy Payment
The ex-banker pointed out that international payments can take up to two days alongside charging exorbitant fees or a substantial percentage of the transaction amount. In this context, Kyren spotlighted the transformative power of cryptocurrencies like XRP.
He noted that XRP allows for the swift and cost-effective transfer of value globally, with fees costing only a fraction of a cent. According to Kyren, this revolutionary capability could render payment service providers (PSPs) and Nostro accounts obsolete.
He mentioned PSPs such as Mastercard, PayPal, and Visa. In parallel, he noted Nostro accounts, often maintained by banks, lock funds to ensure liquidity during cross-currency transfers.
Kyren argued that by utilizing XRP, banks can eliminate the need for Nostro accounts when conducting large transfers. Moreover, he stated banks would instead use XRP as a bridge asset between currencies.
Role of DLT and Other Cryptos
Furthermore, the ex-banker noted cryptocurrencies enable people to send money worldwide without intermediaries like PayPal charging excessive fees. Kyren highlighted other cryptocurrencies with applications in the banking sector, such as Stellar Lumens (XLM) and WadzPay (WTK).
Besides, Kyren underscored the potential of distributed ledger technology (DLT) in streamlining banking operations. He cited that many of his former tasks as a banker involved manually updating payment ledger systems. He humorously hinted at the possibility of DLT taking away his job.
Ultimately, Kyren believes cryptocurrencies like XRP, XLM, and WTK bring much-needed efficiency to the finance sector.
“I can’t wait to see how blockchain begins to change the payments landscape. One day in the near future, we’ll operate in a financial system that’s secure, instant, and efficient,” the ex-banker remarked.