The banking industry did not notice they were short of seamless, fast and cost-effective transactions until Ripple (XRP) brought in its sophisticated tools, resulting in top banks across the world sensing that blockchain technology has more to offer than there archaic tools.
When Ripple came in, cross-border remitting was as slow as snail, with SWIFT’s technology delivering inter countries funds in days.
Well, Ripple came in and introduced its blockchain technology to big banks and fintechs and converged world’s top banks under RippleNet, while tutoring them the best practices in cross-border remittance service.
The seamless provision made by Ripple (XRP) brought in FOMO into the banking industry, making big banks understand and acknowledge that the traditional banking ideas is nothing but a waste of funds, time, and energy.
Banks including Western Union and Money Gram before the advent of Ripple dominated the archaic remittance world, providing cross-border remittance in an expensive and crude way, but the coming of Ripple created fair of looking for a better means of remitting payment across borders.
Blockchain Is The Solution
Several banks who are still in shock due to the provision made by Ripple have all testified that Ripple tools are cuts above the rest. Many of them are still thinking of accepting blockchain hook, line, and sinker, but the fear of making all transaction transparent is still making them to back out.
Ripple’s xCurrent Cushions The Fear.
On June 13, Reuters reported David Schwartz, Ripple’s CTO as saying that banks are not going to adopt blockchain for international payments due to the fear of privacy and scalability. Despite banks understanding that blockchain technology reduces transaction times and costs, they still have privacy issues with the technology.
Meanwhile, Ripple has got the solution. Ripple’s xCurrent’s immutable interledger protocol offers immediate transfer but interestingly, it is not a distributed ledger. The network peers do not have access to shared ledger that notable blockchain ventures uses.
Previously, Ripple has launched a classic blockchain-dependent tools for banks, but they rejected it sighting that they cannot put the whole world on a blockchain technology. Now, many banks have incorporated Ripple’s xCurrent and many are still on the verge of using it.
Banco Santander, one of Europe’s top bank has deployed xCurrent to power its app, One Pay FX, which makes immediate payment within Europe and uses a day to perfect dealings between the region and South America.
Ripple’s (XRP) xRapid Platform Is the Key
Around May 2018, many fintechs partook in the pilot of Ripple’s xRapid platform. Those fintechs saved around 40-79 percent with their transaction time reduced to just two minutes instead of the three days or more used in perfecting cross-border payment.
xRapid today is going to be used in South America and in Philippine to settle payment across countries. This tool has XRP has its base currency, and will need to partner with more exchangers before it could be used in many other regions.
The Fear Has Gripped SWIFT
In May, the FOMO gripped SWIFT, making the traditional remittance company see light in blockchain technology.
SWIFT showed that DLT is perfect for real-time payment, full audit trails, real-time account entry confirmation among other things that its tool cannot achieve before. Around 30 banks queued behind SWIFT that month to achieve a seamless payment means than the traditional method available to them.
RippleNet Is Growing
Notable financial institutions are leveraging RippleNet, the most advanced blockchain technology in universal payment as of today. The tentacles of RippleNet has gone wide, and no doubt, the network is disrupting over 40 countries across six continents. Today, over 100 financial institutions are running after Ripple, and the satisfaction has been on their face since they sensed the awesomeness of the Ripple tools.
Beyond its present space, RippleNet is being used in Nigeria today and other African countries are expected to follow.
Ripple In Middle East
The outstanding performances of Ripple has reached Ripple East and banks in that region including the Saudi Arabian Monetary Authority (SAMA).
The central bank deployed xCurrent to improve their payment infrastructure. After SAMA, Saudi Commercial Bank (NCB) is now using the technology.
The same is happening in UAE. One of the region’s largest exchange, UAE Exchange, announced in February 2018 it is incorporating RippleNet to achieve fast cross-border payment.
In Kuwait, Kuwait Finance House have announced they are joining the RippleNet for cross-border payment.
The FOMO Is Not Over!
In few months when Ripple’s (XRP) xRapid begins work fully, more banks will seek to look into blockchain technology, and possibly see a reason to partner Ripple in reviving the financial industry.