Ripple’s Global Head of Banking, Marjan Delatinne, spoke at the Global Blockchain Summit, addressing some of the most sought out questions by people in the crypto community.
As reported by GTR, Delatinne said that the most significant development for Ripple happened last week, which was the partnership with MoneyGram. She added:
“MoneyGram is one of the largest payment service providers worldwide. It has a very big footprint on the remittances business, and more importantly, it is going to use one of our key products, xRapid, to transfer funds.”
MoneyGram is one of the largest remittance companies in the world; this would be a great opportunity for Ripple’s much-awaited product, xRapid, to take-off on a large scale. xRapid has excited a lot of retail users who hold XRP, which is the main ingredient for xRapid to work. They expect the price of XRP to multiply due to the adoption of xRapid. Since Delatinne and other Ripple officials have already confirmed that MoneyGram will use xRapid, which transferred a whopping $20+ billion in remittances last year, this would a first large-scale adoption of xRapid.
“But we don’t talk enough about liquidity, and this is where the real cost of cross-border payments exists. Today trillions of dollars are tied up in pre-funded accounts around the world by banks in order to make sure that the exchange of value in the correspondent banking system is happening. The use case that we have around xRapid is that, rather than tying up capital, we reconcile the transfer of the messages and the value itself. xRapid is about sourcing on-demand liquidity.”
She also added that banks and other financial institutions are using archaic systems, but are hungry for a change in those systems and to gain a competitive edge in the rapidly progressing industry. Speaking about Swift, Delatinne stated that Ripple and Swift are not competitors and that Swift “has its own value and I think we can be very complementary. It comes back to what is best for the community and how they can take advantage of both”.