Commonwealth Bank of Australia Experimenting with Ripple

Commonwealth Bank of Australia Experimenting with Ripple

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Ripple has been selected by the Commonwealth Bank of Australia (CBA) as a transfer mechanism amongst various subsidiaries of the bank. According to statements by David Whiteing, CIO of CBA, the bank has been experimenting with distributed ledger technology and the time has come for the CBA to start looking at upgrading its payment infrastructure with the latest payment technologies.

“As a result, we have done a whole bunch of experiments with it. We are about to launch using Ripple as a means to transfer payments between our subsidiaries.” – David Whiteing

Whiteing recognizes how outdated the legacy banking system really is, “If you look at payments protocols today, they are 40 years old, 7df80b92dafa6e42ff9e28259d9f62dd_400x400so they are very old technology that are highly susceptible to being compromised,”, said Whiteing.

While the CBA is very bold in its acceptance of the Ripple protocol, actual usages will be limited to only internal transfers in a very tightly monitored environment. The CBA has assured that all existing laws and regulations will be strictly adhered to, in a statement to CoinDesk:

“The idea is to test in a controlled environment what a bank-to-bank internal transfer might look like using crypto rather than existing payment providers. We are ensuring our testing remains internal within Commonwealth Bank Group and we continue to comply with all legal and regulatory requirements.”

Regardless of the limited usage of the Ripple protocol between CBA subsidiaries, the fact that a major Australian bank is willing to experiment with digital currency technology should peak the interest of every cryptocurrency enthusiast.

The CBA is one of the largest banks in Australia, employing over 44,000 workers and registering a $4,535 million statutory net profit after tax (NPAT) for the second half of 2014.

Whitening also sees cryptocurrencies being added to the CBA’s mobile app, which currently allows CBA customers access to fifteen different international currencies.

“It shouldn’t be that difficult for us to then add cryptocurrencies to it and whatever other means of payment transfers people might want.”

 

 

Sources: https://www.commbank.com.au/about-us/shareholders/financial-information/results.html

http://www.cio.com.au/article/575937/commonwealth-bank-launch-ripple-payments-between-its-subsidiaries/

Image Source: http://www.abc.net.au/news/2011-12-14/pedestrians-walk-past-a-commonwealth-bank-of/3731870

 

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