It is no doubt that Ripple [XRP] has amassed different partners from different points in the world. From China to America, however, it appears that some of this partnerships are not enough to take the altcoin to the next level for the fact that they have not added much to its price.
When we look around today, a large number of people in the crypto space are seeing hope in Ripple, however, they seem to be weighed down when big partnership does not equal increase in XRP price. However, there is hope for the cryptocurrency with the increasing acceptance of xRapid.
Recently, Ripple [XRP] claimed an inspiring results erupted from the first trials, by different fintechs, of its digital asset XRP as a medium of exchange.
Central banks and big banks are up till now scared of using XRP as a base currency during found transfer, however, with the recent development, which opened financial institutions to the use of xRapid in the $569 billion remittance market, there seems to be more than hope for Ripple.
Why the hope For Ripple?
xRapid is purposely designed for financial institutions who desires minimizing the liquidity costs, at the same time improving customers experience through faster and hassle free transaction process. The tool is innovated due to the fact that “payments into emerging markets often require pre-funded local currency accounts around the world”, making liquidity cost exorbitant.
One interesting fact is that xRapid uses XRP to settle on-demand liquidity, thereby lowering the costs while enabling real-time payments in emerging markets. The tool is built for enterprise use, and makes use of XRP, which offers banks and payment providers a highly efficient, scalable, reliable liquidity option to service cross-border payments. The fact that once xRapid, which uses XRP for settlement, is accepted by fintechs, there is going to be increasing demand for the cryptocurrency in the market, and hence, result into more hope for Ripple.
A look Into xRapid’s latest performance.
The likes of IDT, MercuryFX, MoneyGram, Viamericas and Cuallix confirmed the suitability of xRapid and XRP in fund transfer. The first pilot test, according to Ripple resulted in 40-70% savings on FX exchange rates for fintechs who adopted the tool. At the same time, it is faster, since it does not take 2-3 days, but minutes.
“It’s encouraging to see positive xRapid results because they validate what many in our industry already know: certain digital assets have utility,” says Asheesh Birla, SVP of product at Ripple.
“XRP’s utility lies in its speed and scalability, which makes it the perfect fit for cross-border payments. The XRP Ledger can send 1,500 transactions per second.”
Like many other fintechs, Paul Dwyer, co-founder and CEO of Viamericas, a financial institution, was at the inception scared of using XRP due to possible volatility in the cryptocurrency space. He has however seen the wonderful performance of xRapid in the remittance industry.
“It’s clear that xRapid can lower liquidity costs while increasing payment speed and transparency in a way that facilitates rigorous compliance controls,” he says.
“We believe that digital assets like XRP will play a key role in the future of cross-border payments, helping to safely address some of the structural inefficiencies of legacy settlement infrastructure as their adoption grows. We look forward to exploring next steps with Ripple.”
Conclusion: Adopting xRapid is tantamount to adopting Ripple. With time, if Ripple continues with this pace, there is high possibility of the price of Ripple [XRP] increasing in the market.