Let’s dig into the Bank for International Settlements and find their connection to Ripple. We know that the Bank for International Settlements is king of the castle, we know that the Bank for International Settlements has been against crypto for the longest time, we also know that Brad Garlinghouse was just at a high up advisory board where the general manager of the BIS Agustín Carstens was in attendance.
Lets first start out with: Who is the Bank for International Settlements. The Bank for International Settlements is an international financial institution owned by central banks which “fosters international monetary and financial cooperation and serves as a bank for central banks”. The BIS carries out its work through its meetings, programmes and through the Basel Process – hosting international groups pursuing global financial stability and facilitating their interaction. It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.
The BIS is based in Switzerland – where was Brad Garlinghouse just spotted? At the Swiss National Bank Conference. Who was in attendance at the Swiss National Bank Conference – no other than the General Manager of the BIS Agustín Carstens.
But why is the BIS so important? The BIS mission is to serve central banks. What is the purpose of Central Banks around the world? A central bank’s main function and purpose are to supervise and regulate banks and financial institutions, implement monetary policy, maintain healthy levels of inflation and employment, issue and monitor currency, and aid the government in financial payment services. If the BIS gets on board with Crypto (XRP) and they see a real use case, and they see the impact XRP can have on the world the flood gates will open. Let’s face it, if the BIS gives the okay on digital assets all central banks around the world will have the approval to go out and find a digital asset and a use case. What are the biggest pain points in the banks? Settlement. What is the 1 and only digital asset that can solve this issue? XRP. The IMF and Christine Lagarde keep putting Ripple Executive and the king (BIS) in the same room for a reason. To get the point across about XRP and the clear issue Ripple is trying to solve. It was no coincidence that Brad Garlinhouse was at this event in Switzerland and was on the panel to present.
The BIS had said over and over that they see no need for digital assets and they have no purpose in the world. Well, let me tell you something. Agustín Carstens the General Manager of the BIS did a complete 180, and has opened his eyes. We can all say thanks to Christine Lagarde. Look at what Agustin Carstens said about Crypto just last year:
1. Cryptocurrencies have serious economic design flaws
Cryptocurrencies do not scale like sovereign money, they are prone to congestion, and the finality of payments is problematic. The first issue here is their cumbersome setup. To put it in the simplest terms: if I buy a coffee, you have to store the payment information (in fact you have to store the history of all purchases ever made,) and it may mean that your pending transaction cannot be processed easily in a short time
Watch this video and start at the 40 min mark: This video was from May 22nd and Agustín Carstens said “Bitcoin is interesting, its not a good store of value and its not a currency” But then he goes on to say that Blockchain if used right can be very powerful. The BIS is warming up to digital assets.
To Sum this all up:
The Bank for International Settlements (BIS) is sometimes described as the central bank for central banks. Without the BIS understanding, the use case of digital assets especially XRP as its main target is to speed up the way money moves around the world within the banks and speed up settlement times then we will never replace SWIFT. Ripple’s goal (let’s be honest) is to take over SWFIT. SWIFT is outdated and is old technology.