Ripple (XRP) –Cryptocurrency has been angling for mainstream adoption as skepticism trails the digital currency market with the recent drop in the value of the market. However, this has not stopped significant stakeholder in from targeting mainstream markets.
One of the largest blockchain tech company Ripple (XRP) has highlighted plans to break into the Chinese market. This was revealed by a top executive who revealed that ripple intends to bring its distributed ledger technology designed to speed up cross-border payments.
According to the head of strategic accounts at Ripple for the European Union Jeremy Light, China is a major target for Ripple as it has a large consumer market. Ripple views the Asian country as a pivotal area in the quest for mainstream adoption.
Ripple signed partnership deal with Hong Kong firm
Ripple has made inroads lately in China, the blockchain company announced a partnership with HongKong based financial firm LianLian International to bring cross-border transaction between Hong Kong China, US, and Europe.
That was the first indication of Ripple foraying into the Chinese Market, and many industry analysts had viewed that partnership as an intent from Ripple to have more presence in China. It is already popular in Japan and South Korea which makes foraying into China the next logical step.
Blockchain technology has become the order of the day as it uses a distributed ledger that underpins most cryptos. The technology does not pass transactions through a centralized server but passes the transaction across several locations.
This allows for faster transaction and anonymous transaction which has led to the popularity of several currencies.
Ripple uses a ledger distribution whereby transaction Is approved by a network of independent servers rather than miners that validate transactions on the popular bitcoin blockchain.
China is a conservative market
Ripple’s intent on China would have to come via other services as China is very cautious when it comes to its financial system.
The Chinese government have clamped down on trading in Cryptos after the Crypto carnage that happened last year.
The government also explicitly banned the funding of new technological projects by Initial coin offerings due to the uncertainty that it brings.
This makes adoption of Ripple’s XRP very unlikely in mainland China as the government agencies put a monitoring eye on cryptos activities.
Ripple has a large user base worldwide and has more than 120 financial institutions signed on to its technology. This includes financial giants like UniCredit, UBS, Standard Chartered and Santander. However, the Chinese market is a different ball game.
China is home to over 1billion people but has few dominating financial payment systems which is surprising but that’s how the communist country works.
Ripple would have to compete against popular payment getaways like Alipay and Tencent WeChat pay.
Chinese citizens are fairly reactive and Ripple would have to create more awareness through the strategic partnership with financial companies.
This conservative nature of the Chinese has prevented big tech giants Google, Twitter and Facebook from making inroads in China.
Ripple Has So Far Made Little Inroads In Convincing Financial Firms To Adopt XRP
In other news Ripple has created an app referred to as Money Tap in conjunction with 61 domestic lenders in Japan. The Money Tap app allows banks to resolve 24/7 payments transaction in Japan.
Ripple has struggled to convince banks and financial of the benefits of the XRP crypto, however, Ripple digi token is widely sought after which allows ease of transfer from one currency to another. This is more of an interesting factor for these financial institutions.
Ripple has also entered into partnerships with several firms to use its xCurrent product which enables instant settlement of payments across the world. Ripple also has the crypto equivalent of xCurrent named xRapid.
The xRapid platform uses the XRP coin as the means through which transactions are carried about and allows transfers and converting between exchanges. Western Union and MoneyGram are both interested in the xRapid technology.
This has been deployed by both money transfer firm and is currently in the trial period as they seek to perfect the technology before launching it sometime next year.
Ripple is currently ranked 3rd on total market cap with $11billion and has 39 billion XRP in circulation. XRP is one of the top crypto having established a strong market base in the crypto market with its fast, reliable and secure technology.