Bank of America Highlights Ripple in APAC Report on Payment Innovation

A Bank of America report on harnessing the power of payment innovation in Asia Pacific (APAC) mentions the work of Ripple in cross-border payments.

Ripple continues to garner recognition from leading financial giants in traditional finance for its work on cross-border payments. Bank of America (BoA), a multinational investment banking institution headquartered in the United States, is one such financial firm. 

In a BoA report titled: “Breaking New Ground: Harnessing Payments Innovation in APAC,” Tom Alford, Deputy Editor at Treasury Management International (TMI), shares insight into the expanding payment industry in the Asia-Pacific (APAC) region.

The report, recently shared with the XRP community by prominent influencer WrathofKahneman (WOK), details the evolution of payment technology in the region and the emergence of innovative technology.

#Ripple mention in Bank of America report (partner), "Harnessing Payments Innovation in APAC." Notes SWIFT gpi has limited Ripple's impact. Interviewof BofA Head of Treasury Products, Asia Pacific, Global Transaction Services.https://t.co/5ni4SPcGo4 pic.twitter.com/HjwVI7sYa8

— WrathofKahneman ? (@WKahneman) July 6, 2023

The report featured remarks from Bank of America representatives who discussed the promise and challenges of these innovative technologies. Venkat Es, BoA’s Head of Treasury Products for APAC, called attention to Ripple’s ability to facilitate cross-border settlements using blockchain technology.

Ripple has found its way into similar reports highlighting the evolution of cross-border payments due to the robustness of its RippleNet and ODL offering. 

The Crypto Basic has called attention to some of these reports, including ones from Deutsche Bank, the Faster Payment Council and the International Monetary Fund. Attorney John Deaton previously asserted that Ripple has challenged Bitcoin in terms of cross-border payments since 2015.

Ripple Efforts Limited

However, the Bank of America article is not as bullish as the previously-highlighted reports. Notably, Venkat argued that, despite Ripple’s efforts within the cross-border payments scene, the impact of the technology company’s works had faced limitations.

“The reason for this is the rapid emergence of SWIFT gpi as the favored solution for tracking and tracing cross-border payments,” the report claims. The SWIFT Global Payment Innovation (GPI) is a service that aims to make international payments faster, transparent, and trackable.

While this claim has faced opposition from some XRP community members, WOK believes it is accurate. Due to its robust features, WOK likened the GPI system to RippleNet but with the absence of ODL. As a result of its affiliation with SWIFT, GPI has enjoyed considerable adoption. 

In contrast, despite growing prominence, Ripple’s offerings have faced limitations due to the legal pressure from the U.S. SEC lawsuit. The legal proceedings have hampered the adoption rate, resulting in some institutional clients shifting to rival products. 

Notably, MoneyGram and Ripple ended their partnership in March 2021, with MoneyGram subsequently moving to Stellar, Ripple’s rival. While the reason for the termination remains undisclosed, the announcement came three months after the SEC sued Ripple.