The development in the cryptocurrency space is alarming to the extent that banks, both central and commercial, are finding it hard to catch up with the revolution in the space.
To satisfy their customers, financial institutions are coming into the crypto space with full force. This is reflected in the statement of Marjan Dalatinne, Ripple’s Global Head of Banking, and a former employee of SWIFT for 10 years, where she said over 20 financial institutions have signed up for Ripple’s xRapid, a cross-border remittance solution making use of XRP token. The progress is coming within 8 months that Ripple unveiled the technology.
Merjan made this disclosure during an interview with GTR’s Sanne Wass during the Blockchain Summit last week.
She spoke on Ripple’s development in recent time, saying Ripple’s investment in MoneyGram came out to be the weightiest since the respected remittance firm is going to make use of xRapid for cross-border transfers.
As to xCurrent, Delatinne said Ripple is building a decentralised network for cross-border remittance, with over 200 customers making use of the network.
She said, nothing less than 5 customers, which are big financial institutions, sign up for the network owing to its potentials, which includes speed, data management, reconciliation capacity.
Ripple has been waging war on the trillion of dollars locked in already-funded Nostro accounts across the globe.
The redundant funds that are majorly used for cross-border remitting is thought of as unnecessary, considering the kind of technology initiatives offered by Ripple.
In this wise, Ripple’s xRapid offers a remittance solution that does not require pre-funding accounts to perfect transfer.
xRapid looks for on-demad liquidity rather than pre-funding. The solution does not require banks to buy cryptocurrency to get their funds transferred, but it serves as a bridge of currency between two fiat currencies, Dalatinne posited.
She, however, said banks are being educated to understand that they do not need to have cryptocurrency to make use of xRapid since they need to inform regulators about this.