Needless to say, Asia was one of the biggest recipients of remittances worth roughly $613 billion sent globally in 2017. The large swathe of the amount came from the expatriate workers in the Middle East, where UAE Exchange is one of the key players.
At present, most of the funds are sent through foreign exchange branches. But a growing part is getting transferred through the websites and applications with the use of blockchain technology expected to build up in the next few years.
That’s the transition UAE Exchange and San Francisco-based Ripple are getting their hands on.
A New System of Payments Is Coming Through
The UAE Exchange, one of UAE’s largest remittance firms, is now working in-hands with Ripple to launch a new platform using Ripple’s blockchain technology to make payments in Asia. The platform is said to be available in the first quarter of 2019.
UAE Exchange CEO, Promoth Manghat, has confirmed that he is willing to go live in 2019 with the support from some Asian banks, and RippleNet.
According to Manghat –
“There are many Asians working in the country and they need to send money to their countries. Because of this, transfers to India, for instance, are 36% of all transfers abroad, while Pakistan is 8.8% and the Philippines, almost 7%.”
The UAE Exchange first collaborated with Ripple in early February 2018. Indeed, it’s because Ripple has a good system for cross-border transactions that is faster and cheaper.
Ripple – The Trusted and Efficient Partner For Many Firms
With the remittance market growing wider, Ripple is making deals with companies from across the world including CIMB in Malaysia, Coinone on South Korea and PNC in the US. A few banks from the Middle East including the Kuwait Finance House and the National Bank of Ras Al Khaimah have also joined the Ripple. The market is growing, so as Ripple’s success.
Promoth Manghat concluded saying –
“Blockchain holds tremendous promise for the industry, but there is progress to be made before we see it go fully mainstream.”