Tom Zschach, Chief Innovation Officer at Swift, criticized Ripple's model and called for the financial industry to adopt open, neutral standards in global payments.
Neutral Standards in Payments
In response to praise for Ripple's 'resilience' amid its SEC legal battles, Zschach remarked that surviving lawsuits does not equate to resilience. He emphasized that global payments should not depend on the balance sheet of a single company.
Compliance and Industry Consensus
Zschach argued that compliance should arise from industry consensus rather than from one firm's lobbying of regulators. He pointed to the significance of public blockchains for financial operations, including tokenized Treasury bonds and transactions.
The Future of Public Blockchains in Finance
Zschach also noted that public blockchains are not a complete solution on their own, requiring legal enforceability, strict compliance, and privacy. He highlighted the need for developing additional solutions related to identity, legal recourse, and standards.
Tom Zschach's remarks underline the importance of choosing between neutral, jointly governed standards and private networks controlled by a single sponsor. The necessity of adhering to standards for the broad application of technologies remains a crucial topic in the financial sector.
