XRP Ledger Attempts Upgrade Separating Bank Payment and Compliance Functions
(9 days ago) · 1 source · Summarized by CryptoBipto
The XRP Ledger is retrying a network upgrade designed to allow banks to separate payment processing from compliance duties. The upgrade would enable financial institutions to delegate these functions to different parties on the ledger. Details on why the previous attempt did not succeed and the timeline for the retry remain limited based on available information.
WHY IT MATTERS
Think of a bank sending money like mailing a package: one person packs and ships it (the payment), while another checks that the contents are legal and properly documented (compliance). Right now, on many blockchain networks, the same entity has to do both jobs. This XRP Ledger upgrade would let banks hand off the compliance-checking job to a specialist, much like hiring a separate inspector. This matters because big financial institutions often have complex regulatory requirements, and giving them more flexibility in how they organize these tasks could make it easier for them to use blockchain technology. An 'upgrade' in this context means a change to the rules that the network's computers follow — similar to a software update on your phone, but one that every participant in the network needs to agree on.
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- coindesk.com
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