WrathofKahneman (WoK), a well-known figure in the XRP community, 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 the paper, Neyigapul explored the revolutionary potential of blockchain technology in addressing challenges in the traditional banking sector. One case study discussed a supposed partnership between Ripple and Citibank, focusing on Citibank’s implementation of blockchain solutions to improve its cross-border payment services. The 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 create a private blockchain network specifically for cross-border payments. This platform was designed to enable immediate transfers between participating institutions, eliminating intermediaries and facilitating real-time settlement. The paper claimed that the implementation resulted in a significant improvement in transaction speed, reducing processing times from days to seconds. It also suggested that Citibank achieved cost savings and enhanced transparency for customers by providing real-time visibility into transaction status.
However, there are reasons to be skeptical about these claims. The research paper was published on August 4, 2023, which predates Citibank’s official announcement of adopting blockchain solutions for settlement transactions on September 18, 2023. Furthermore, there is no known partnership between Ripple and Citibank at the time of writing. The paper also failed to cite any sources and did not specify whether the implementation was a pilot or in full production.
These inconsistencies have raised doubts among members of the XRP community about the authenticity of the report. Ripple’s CEO, Brad Garlinghouse, even stated in a 2019 interview that Citibank would likely be the last customer Ripple signs up, as Citibank has a vested interest in maintaining the status quo and resisting change.
Although the academic report was labeled as a “preprint,” meaning it was made available before formal publication in a peer-reviewed journal, recent developments have not confirmed any collaboration between Ripple and Citibank. It is important for readers to conduct thorough research and not consider this article as financial advice. The opinions expressed in this article are the author’s own and do not reflect those of The Crypto Basic. The Crypto Basic is not responsible for any financial losses incurred.