A demo video shown by Ripple during its Swell 2020 conference apparently confirms that the second largest banking institution in the United States uses one of its products. In particular, one of the devoted members of the XRP community posted a screenshot of the video. What followed was a heated discussion with other members of the community trying to figure out whether BoA is actually using Ripple's On-Demand Liquidity (ODL) solution that takes advantage of the XRP or xCurrent cryptocurrency.
But a respected financial consultant has offered insight into the matter.
Bank of America uses Ripple technology
Ripple, the San Francisco-based blockchain-based payments network, has long been touted as the next in line to replace the legacy SWIFT system. Banks around the world have been using the SWIFT network for international settlements for almost five hundred years.
Ripple represents serious competition for SWIFT, as it can complete payments in seconds and at a lower cost compared to the SWIFT system. Several renowned banks, remittance providers, and financial institutions have already embraced Ripple's technology. And Bank of America is apparently one of those banks that uses one of Ripple's products.
A Twitter user with the alias Danger Mouse XRP public a screenshot of a demo video presented by Ripple during this year's Swell conference. The screenshot implies that Bank of America uses Ripple's technology to transfer funds. Danger Mouse XRP suggested that BoA was using the On-Demand Liquidity service as that part of the video was about using ODL.
Hey Bank XRP, it was during the RippleNet On-Demand Liquidity Demo… pic.twitter.com/qZbifQe8xc
– Danger Mouse XRP (@DangerMouseXRP) October 14, 2020
xCurrent, not ODL
Despite Danger Mouse XRP claiming that BoA is using ODL (hence XRP), Panos, Mekras, the founder and CEO of DigitalGen Financial Services has indicated that this is not really the case. Mekras indicated that Bank of America is using xCurrent and not the ODL.
“The one with Fast Remit was an ODL demo and it was in the main room / live. The one with BoA was in the demo room and it was an xCurrent demo, not ODL. I was there watching it live ”.
xCurrent is a cross-border payment solution designed as a fast and seamless way for banks to communicate with each other during a transaction. In particular, xCurrent does not use XRP cryptocurrency despite being blockchain-based.
The relationship between Ripple and Bank of America has always been mysterious. There has never been a formal confirmation of a partnership between the bank and the fintech firm, although Ripple has previously revealed that the banking giant had been testing its technology.
Ripple's payment products have created very little demand for XRP
Even though Ripple's distributed ledger technology attracts a couple of partners, it hasn't created much demand for XRP. MoneyGram is a widely known money transfer company that uses the technology after striking a strategic deal with Ripple last year.
More than two dozen companies are using XRP-based ODL. Ripple enthusiasts have long clamored for this to drive up the price of the fourth largest cryptocurrency. Despite the fanfare, the price of XRP is still a long way from the January 2018 record of $ 3.46.
In general, institutional clients are wary of using the XRP token for transactions due to controversies, lawsuits, and regulatory uncertainty surrounding the digital asset.