May 29, 2015
The Commonwealth Bank of Australia (CBA) is poised to adopt Ripple technology to enable money transfers among its subsidiaries. Ripple technology basically involves a peer-to-peer distributed payments network that supports cryptocurrency besides traditional currencies. The Ripple network has been developed in accordance with an open-source Internet protocol called Ripple Transaction Protocol.
CIO of CBA David Whiteing has positive views towards bitcoin and believes that banks do have an important role to play by being associated with cryptocurrency protocols. CBA’s mobile app already supports multicurrency bank accounts and can integrate digital currency in the near future. CBA’s mobile banking app is used by over 3.5 million customers. With CBA being one of the top banks in Australia, cryptocurrency will get a major boost in the region.
CBA is actively experimenting with Ripple protocol and would soon be running tests around bank-to-bank transfers using cryptocurrency. CBA is making sure of the compliances with legal and regulatory requirements and will keep the extent of the Ripple system within its own banking network. The association with CBA is a big opportunity for Ripple itself. The company recently raised $28 million in Series A funding and has previously established prominent partnerships in the past with big-time financial institutions such as Western Union.
Ripple is clearly maintaining its focus on working with international banks to transform the international money transfer business through fast and frictionless trading of its digital currency tokens in exchange for fiduciary currency. Besides CBA, Cross River Bank and CBW Bank of the US, Fidor Bank of Germany and cross-border payments service provider Earthport have already announced the integration of Ripple. Key Chinese investors who were part of the Series A investment round will help drive Ripple's adoption in Asia.
Ripple Labs has also joined the W3C Web Payment Interest Group to help lay the foundation for the Internet for value exchange. The group’s purpose is to increase the adoption and use of web payments by improving conditions such as the interoperability of systems. Named one of 2014’s "50 Smartest Companies" by MIT Technology Review, Ripple Labs’ team of 100 is comprised of deeply experienced cryptographers, security experts, distributed network developers, and Silicon Valley and Wall Street veterans. The team shepherds a movement to evolve finance so that payment systems are open, secure, constructive and globally inclusive.