WrathofKahneman (WoK), a prominent figure in the XRP community, has recently discovered a document that suggests Ripple and Citibank collaborated on a private solution for cross-border transactions. The document, titled “Reshaping Banking through Blockchain: Exploring the Future of Financial Transactions,” was written by Bheema Shanker Neyigapul from the Department of IT at Jawaharlal Nehru Technological University in Hyderabad, India.
In this paper, Neyigapul explores the revolutionary potential of blockchain technology in addressing challenges within the traditional banking sector. One case study mentioned in the paper involves a supposed partnership between Ripple and Citibank, where Citibank implemented blockchain solutions to improve its cross-border payment services. The main goal was to reduce settlement times and expenses associated with international remittances.
According to the research paper, Citibank initiated the blockchain project in collaboration with Ripple to develop a private network specifically for cross-border payments. This platform supposedly enabled immediate transfers between participating institutions, eliminating intermediaries and enabling real-time settlement.
The paper also claims that this collaboration led to a significant improvement in transaction speed, with Citibank’s cross-border payment system reducing processing times from days to seconds. Additionally, it suggests that Citibank achieved cost savings and increased transparency by providing customers with real-time visibility into their transactions.
However, there are reasons to be skeptical about the validity of these claims. The research paper was published on August 4, 2023, which predates Citibank’s official announcement of adopting blockchain solutions for settlement transactions. Furthermore, there is no known partnership between Ripple and Citibank at the moment, and the paper does not cite any sources or specify whether it was a pilot implementation or a production system.
These inconsistencies have raised doubts among members of the XRP community about the authenticity of the report. Ripple’s CEO, Brad Garlinghouse, also cast doubt on the possibility of a partnership with Citibank in a 2019 interview, stating that Citibank would likely be the last customer Ripple signs up due to their vested interest in maintaining the status quo.
Although things may have changed in the last five years, with Citibank and other financial giants like JPMorgan adopting blockchain solutions, recent developments have not confirmed that Ripple is currently working with Citibank.
It’s important to note that the academic report was labeled as a “preprint,” which means it was made available before formal publication in a peer-reviewed journal. Therefore, readers should consider this information with caution and conduct their own thorough research before making any investment decisions.
Disclaimer: This article provides information and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.
