Tom Zschach, Swift Innovation Director, hit Ripple in a recent publication on social networks.
Zschach has opined that surviving demands does not qualify as resilience while promoting a neutral government.
“Surviving demands is not resilience. Neutral and shared governance is. Institutions do not want to live in the rails of a competitor,” he said.
What does neutral governance mean?
Neutral governance implies that no company or competitor really controls the rails.
Swift, as a global messaging company, is not controlled by a single company. It is jointly controlled by thousands of banks that are in charge of establishing governance standards and standards.
Zschach implies that banks tend to trust only neutral infrastructure such as Swift.
Although Ripple argues that the older book XRP is completely decentralized, there have been some concerns about the huge control of the company about the network.
Compliance is more than working with regulators
In addition, Zschach insists that compliance is more than getting along with regulators and convincing them that it should be allowed to operate.
The Executive Swift argues that compliance is about ensuring that a complete industry is really able to agree on shared standards.
Absorbing the best of public chains
In his long publication of LinkedIn, Zschach, who is also former managing director of Barclays Capital, argues that public chains are not the solution.
He states that a pubic chain is only “a fast motor without cabin” if there is no demand, privacy and compliance.
Zschach is convinced that traditional finances can “absorb” the best of public block chains in their own terms.
