Ripple has been known to create waves when it comes to making money flow like information does – smoothly. They’ve achieved this through the use of blockchain technology and cryptocurrency, XRP. RippleNet is a web of all the users that can move money around without massive friction by the use of Ripple’s xCurrent, xRapid, and xVia.
In the recent episode of Ripple Drop, Pegah Soltani, Ripple’s Senior Market Intelligence Manager, spoke about RippleNet and said that SMEs and other individuals who have problems gaining access to global payments can make use of RippleNet, without friction.
“In small business payments and market place payout is where we see the most opportunity; It is a $10 to $15 trillion market growing at a 5-10% per year. And in emerging markets where the pain points are the highest and the customers are least well-served, is where we think we can double-down on.”
Kevin Mole, vice president of product marketing spoke about on-demand liquidity and how XRP plays a huge role in the same. He also outlined how liquidity can solve problems of legacy payment systems.
“On-demand liquidity is the way for customers to send fast, low-cost payments, without having to pre-fund destination accounts. On-demand liquidity puts XRP in the middle of that payment, from one country to another.”
Ripple’s xRapid makes use of XRP as a way to source liquidity to facilitate the transaction. Since XRP Ledger allows settlement of transactions in under 5 seconds, the cross-border payments typically take about the same time to complete a transaction. However, traditional payment methods require banks to have Nostro-Vostro accounts which needs massive amounts of cash to be stored as liquidity. xRapid takes away all that and makes a cross-border transaction happen within seconds, which otherwise would normally take days.
Mole further added that on-demand liquidity was currently between Mexico and the Philippines and that more corridors for the same would develop over the course of 2019.
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