R3 Banks Riven With Controversy Despite Success

When Thomson Reuters joined R3CEV as a member corporation, it planned to help with blockchain and distributed ledger technology.

Thomson Reuters customer solutions managing director Mark Rodrigues reportedly said:

Thomson Reuters has been collaborating with customers on blockchain and distributed ledger initiatives and powerful proof-of-concept projects for some time now. The opportunities afforded by this emerging technology are enormously exciting for us and for our customers, and our goal with R3 is to collaborate together with the consortium and our customers in these key industry discussions as we shape the future of financial transactions.

However, the R3 consortium began to change its focus on blockchain technology and big banks like JP Morgan, Goldman Sachs and Santander departed from the group.

The banks put money into Axoni, a US blockchain company. Reuters said the withdrawal came from an arguement over R3CEV’s request for $200 million. Later, R3 raised that amount in a fund raiser that netted over $100 million.

R3 is no longer primarily focused on blockchain but the other banks want to move ahead with it. R3 meanwhile is focused more on cybercurrencies such as ripple and is getting accusations it deceived investors.

R3 has said it never wanted to primarily cultivate blockchain. However, that’s how the company initially marketed itself.

Its new focus is comes with problems as well. Ripple itself is intended to cut the time that banks spend in transferring money. But ultimately central banks are in charge of how banks transfer money and part of the delays stem from making sure all transactions are scanned and stored.

Until there is less emphasis on surviellence both domestically and internationally the longterm solutions developed by banks will be at least questionable and probably not secure.

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