Ripple has continued to make inroads into the legacy financial system. It recently announced a major deal with the UAE exchange and another deal with Lianlian International. Besides this, Banco Santander plans to launch Ripple payments in Q1 of 2018. Just recently, it was announced that Western Union had also signed a deal to test XRP transfers.
Major Deal With Saudi Arabia’s Central Bank
Recent reports indicate that the central bank of Saudi Arabia has signed a deal with a San Francisco-based crypto company. The deal will help the bank settle instantaneous cross-border payments via the blockchain, using xCurrent, which is the enterprise software from Ripple. It will allow the facilitation of such payments with end-to-end tracking. This deal with Ripple XRP is the first time that the central bank has attempted to utilize blockchain technology.
According to the global head of infrastructure at Ripple, Dilip Rao,
Central banks around the world are leaning into blockchain technology in recognition of how it can transform cross-border payments, resulting in lower barriers to trade and commerce for both corporates and consumers.
This deal with the central bank of Saudi Arabia came just a short while after regulators in the Gulf expressed major concerns with the lack of crypto regulation in the region. Thus, Ripple has proven itself to be quite attractive despite authorities not being warm to the idea of crypto.
Ripple’s Deal With Western Union
Western Union recently confirmed that it is testing Ripple after over a month of rumors that started in January. This announcement was made public after the company released its 2017 results. The figures show the institution generated revenue of $1.4 billion, which is a five percent increase from the previous year.
According to the CEO of Ripple, Brad Garlinghouse, the deal will be used to facilitate cross-border money transfers. According to him, Ripple allows transactions that are a thousand times cheaper and faster than Bitcoin.
Why Ripple Is Succeeding in the Financial World
Unlike most other digital currencies, Ripple made it clear from the onset that it was offering a blockchain solution for the financial world. However, this has not earned it many fans in the world of crypto. Most have accused Ripple of undermining the foundations of both crypto and the blockchain.
Another source of criticism is the fact that the founding company owns most Ripple Tokens. The result is that this parent company could technically regulate the price of Ripple when they want to. XRP had risen to $3.84 in January. However, it has since fallen to just $0.59 and is currently trading at around $1.12.
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