Ripple Reveals xRapid Strategy, Says XRP Will Power Global Payments Revolution

The co-founder and executive chairman of Ripple is revealing his vision for how crypto and blockchain technology will disrupt the global payments industry.

At the Crypto Finance Conference in Half Moon Bay, California, Chris Larsen said he believes payments are blockchain’s killer app, and described how Ripple will utilize XRP to power payments around the world.

“For payments, which again we think are the killer app, we think that’s where it all starts. For payments, we think that has additional requirement. You’ve got to have settlement predictability. You’ve got to have consistent low costs. You’ve got to have high throughput…

xRapid, that’s a component of RippleNet. That allows payment providers to lower the cost and liquidity for their global payments. So it allows, for example, a bank that’s trying to send money to Mexico to use XRP as the intermediate currency. They don’t necessarily have to hold XRP, but it’s used to make things very efficient.

So in this example, a customer’s going to a remittance company in the US. Those dollars are now exchanged into XRP through Bittrex, which is a great exchange. It’s immediately settled in XRP in seconds. Bitso, an exchange, then provides the exchange between XRP and Mexican peso that can now be delivered to a Mexican bank, which, because they have a real-time system in Mexico, allows that to go into the customer’s account very quickly.

This now allows payment providers, banks and their customers to move value in one to two minutes versus days or a process that might mask those days but have to charge for the settlement risk and costs.”

Larsen says xRapid and the company’s suite of blockchain-based software solutions is designed to create a system that’s not only fast and inexpensive, but rock solid and secure, with essentially a zero rate of failure.

“These are atomic transactions. They can’t fail in the mail. There’s no settlement risk. And that gives their customers a much better experience. So the banks and their customers, they know in today’s world they’ve got to be lightning fast. And this really allows them to do that.”


 

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Author: Daily Hodl Staff
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Ripple and Swift Continue to Battle It Out For Dominance In The Banking Industry

The just concluded Money 20/20 highlights a global paradigm shift in the way money transfers are currently being conducted and the future of the financial industry. Global leaders in card payment services such as American Express, have integrated blockchain based systems to solve the latency issues of the previous non-blockchain system. Ripple’s xCurrent is now part of the American Express back end infrastructure powering the payment platform.


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Also to note, are the predictive comments of Ripple CEO, Brad Garlinghouse, when he said that dozens of banks will be using their payment solution software of xRapid by next year.

Such a statement can only mean that Ripple products are going to replace a current existing payment system. This payment system is the traditional SWIFT.

Swift has been the darling of banks for close to 5 decades now. It is one of the largest financial messaging systems in the world. Financial institutions use it to securely transmit information and instructions through a standardized system of codes. The service is not only used by Banks, but by Brokerage Institutes and Trading Houses, Securities Dealers, Asset Management Companies, Clearing Houses, Traditional Forex Exchanges just to name a few. But payments on the platform take anywhere from 1 to 3 days making it easy for Ripple to encroach on Swifts dominance.

Transactions on the Ripple network are as quick as 2 – 3 seconds; as cheap as $0.0004; traceable and secure on the blockchain. The delay extra minutes during the transaction are due to the proprietary systems at each end of the transaction that belong to the financial institutions. This is the case during the xRapid tests that recorded transaction speeds of 2 – 3 minutes.

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In an attempt to counter Ripple, Swift has introduced a new service called Global Payments Innovation that is being used by 165 banks. Half of the transactions on this new service reach the destination within 30 minutes. Swift is still sceptical about blockchain technology particularly on how to accommodate its 11,000 member banks. The company says the solution would have to come from building over 100,000 sub-ledgers for the set number of banks. However, Ripple dealt with the issue of scalability over 3 years ago and can accommodate a similar number comfortably.

Moving forward and what will determine which service comes out on top between Ripple and Swift, is the response of the financial institutions. Will they try out Ripple products like Santander, American Express, Moneygram and Western Union, or will they opt to ignore the emerging sector of blockchain technology completely?

The rivalry will surely continue for the better part of the future with each side innovating to beat the competition. This means in the long run, it is the best product that will win.

However, the tide seems to be on the side of Ripple as its solutions are more efficient than those of Swift.


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Author John P. Njui 
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