Zakharchenko Natalia, Doctor of Economics, Professor, Department of Finance, Banking and Insurance, I. I. Mechnikov Odessa National University, Odessa, Ukraine

ORCID ID: 0000-0002-9895-531X
e-mail: nvzakharchenko777@gmail.com

Nikola Svitlana, Candidate of Economics, Associate Professor, Department of Finance, Banking and Insurance, I. I. Mechnikov Odessa National University, Odessa, Ukraine

ORCID ID: 0000-0003-4010-6689
e-mail: lifesve@gmail.com

Volnevych Yuliia, student of the Faculty of Economics and Law, I. I. Mechnikov Odessa National University, Odessa, Ukraine

ORCID ID: 0000-0003-4097-6289
e-mail: usvoln@gmail.com

Prospects for the Introduction of Innovative Ripple Technology in Financial Institutions

Abstract. Introduction. Payers need reliability, speed, convenience and lower cost, but these key elements differ in today’s global payments. This is due to the current problems associated with the movement of money between currencies and institutions that are licensed to process these transactions. Ripple is a private decentralized blockchain created by banks for banks. The Ripple project is very beneficial for banks, because with its help they will be able to make fast money transfers, as well as reduce transaction costs, which will help to be more efficient. In addition to banks, Ripple will be useful for corporations, stock exchanges and payment systems.

Purpose. The main purpose is the analysis of the innovative Ripple technology, which is a solution of the current problem related to transaction.

Results. This article discusses the current issue of moving money between currencies and institutions that are licensed to process these transactions. The experience of money transfer companies has been studied and found that although such companies are very convenient and offer fast means to send payments, they are expensive, up to 10% of the transaction cost. Based on the research, it was found that the latest Ripple technology is the best solution to the current problem. The analysis of the principle of operation of the technology and the basis of the preference for choosing the Ripple system, including security, instantaneous, free, support for tokens, fiat and cryptocurrencies. The Ripple service has been found to operate as a public database or registry that has its own consensus content, and has its own digital asset XRP as an intermediate currency in the payment stream that has been compared to other digital assets. The experience of banking institutions that have already introduced liquidity on demand, Ripple technology, is analyzed and represented, that it has made financial transactions more efficient.

Conclusions. Ripple Net allows financial institutions to use blockchain technology in transactions and work without intermediaries, while implementing the four key elements that concern senders – reliability, speed, convenience, and in the long run – lower cost. That is why the use of Ripple technology can change the entire system of electronic payments in the near future of international payments. The main task of creating the Ripple network is to work with banks and payment system providers to ensure the free exchange of assets between users with almost instant transactions and minimal fees and allows transactions with any currency and assets in general. This gives the project a huge potential for future development.

Keywords: transaction; money transfers; Ripple technology; financial and banking institutions; liquidity on request.

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