A five-year-old report from the leading German Deutsche Bank highlighting how Ripple uses XRP to facilitate cross-border payment has resurfaced.
Head of social adoption for XRP Healthcare Edo Farina called attention to the report, underscoring Ripple’s commitment to promoting cross-border payment using blockchain technology.
CASH MANAGEMENT paper 📝 by Deutsche Bank and The Banker.
“Central Banks 🏦 are working on issuing stable coins, which is not issuing a pure-play cryptocurrency, but one that acts as a BRIDGE CURRENCY.”#XRP, #RIPPLE and XRapid mentioned nearly 20 times. pic.twitter.com/bgogwVcz9a
— EDO FARINA 🅧 XRP (@edward_farina) June 27, 2023
German Bank Recognizes Ripple’s Contribution to Facilitating Cross-border Payments
The report, published in July 2018, elucidates Ripple’s strategic usage of XRP to promote efficient cross-border remittance.
It underscores the potential of blockchain technology to disrupt the traditional international payment landscape, using Ripple’s flagship product, RippleNet, as a case study.
At the time of Deutsche Bank’s report, Ripple’s forerunner product, RippleNet, encompassed three elements: xRapid, xVia, and xCurrent.
The report, tagged “Cash Management: The game changers in payments,” expressly highlights xCurrent’s role in streamlining payment information and processing.
It also underscored xRapid’s capability to provide liquidity for cross-border transactions using XRP as a bridge currency.
In addition, the report demonstrates Ripple Labs’ success in garnering more than a hundred financial institutions to its RippleNet network. For instance, SEB, a leading Swedish bank, leveraged RippleNet’s resources to facilitate over $1 billion in cross-border payments between the US and Sweden.
Furthermore, the Deutsche Bank report enunciated the fintech company’s innovative approach to solving liquidity problems in cross-border payment. While the current component simplifies payment processing, xRapid uses XRP to clinch swift liquidity provision.
Also, a US-based non-bank financial institution, Cuallix, successfully deployed xRapid to accelerate remittance from the US to Mexico.
The process involved converting USD to XRP through a crypto exchange which instantaneously converts the XRP to Mexican pesos.
This remarkable process considerably reduced the delay and cost of sending money internationally, making RippleNet an attractive remittance and cross-border payment solution.
The Deutsche Bank report circulated the Twitter space soon after the XRP recalled a similar article by the US Faster Payment Council. The article shared by an XRP community member @Rohitku24694375 on June 30 highlighted Ripple’s innovative cross-border payment solution.
The Potential of Blockchain Technology In Cross-border Payments
Furthermore, the Deutsche Bank report emphasized the potential of blockchain technology in reducing the inefficiencies in cross-border payment services.
That particularly applies to underserved regions where receiving banks withdrew support for these payment services. Most of the time, traditional wire transfers may delay up to five days before reaching the beneficiary.
It may cost the sender significant money as service charges to initiate the payment. According to the report, cryptocurrencies and distributed ledger technology like Ripple have made cross-border payment faster and cheaper.
Nonetheless, the report acknowledged the challenges of blockchain technology that needed solving before mainstream adoption. These roadblocks include instituting comprehensive industry-wide regulations and issues concerning scalability.
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