Yesterday, ripple announced that the National commercial bank of Saudi Arabia will start using ripplenet in Q4. According to ripple, NCB will first use ripplenet to connect customers in North America and Asia. Take a look at part of the statement below.
The bank will first connect to financial institutions in North America and Asia, starting in Singapore. Launching these two critical payments corridors out of the gate offers immediate value to NCB’s customers — services in regions that they have not had access to before.
While this move by NCB points to the growing adoption of ripple technologies in the financial industry, the NCB deal has broader geopolitical implications, which could open the floodgates for XRP (XRP) adoption. To understand why, it’s important to step back a little bit and understand why SWIFT is dominant in cross-border payments. SWIFT is dominant because it is not only a payment system, but also a tool for curbing the flow of illegal money, especially money linked to terrorism financing.
Now back to the NCB, the Kingdom of Saudi Arabia is one of the key U.S allies in fighting global terror. The fact that the largest bank in the country is looking to ripple technologies goes to show that ripple offers checks and balances on money flows, on top of its extremely efficient transactions. There is no way a key U.S ally in a highly volatile region would allow for the integration of this technology into its systems if it had any loopholes for crime. More so, when that system will be used for cross-border payments to-and-from North America. In essence, the adoption of ripplenet by a Saudi Arabian bank is a major win for ripple and XRP, one that could fast-track the adoption of XRP all across the world.
It has the tech-advantage to back it up. All banks that have tested it have given a positive feedback. Just recently, the royal bank of Canada projected that XRP could save banks more than 40% in cross-border payments costs. With the political angle to ripple taking shape, as can be seen by its adoption in the KSA, then it’s not farfetched to postulate that the mass adoption of XRP is coming. The U.S is still a key player in global affairs, and would not allow a deal like the NCB one to go through if there were loopholes. It’s a confidence boost for other banks to move ahead with this technology.
The future of XRP (XRP) is bright. With every coming day, XRP is making steps towards becoming the standard in cross-border payments. As this happens, its value will rise gradually, making highs of over $100 a coin possible. It’s a slow and gradual process that touches not just on the tech itself, but geopolitics as well. Don’t forget that key global institutions like the IMF, and the Federal Reserve are constantly talking about ripple too. These are institutions that have a huge sway on the global financial system and add to the growing influence of ripple in the banking sector.