Ripple’s xRapid banking solution has been making waves in the market with hundreds of traditional banks joining hands to incorporate the xRapid in their respective banking operations. Now the xRapid banking solution has even been appreciated by the world bank, which would give the Ripple made system a necessary push to be adopted more widely.
The World Bank article discussing improvements in remittances make a special mention of the xRapid solution. The articles rightly point on how remittance is most expensive for those who need it the most.
Hers is an excerpt from the articles,
“Remittances are more expensive precisely in the corridors where they are needed most. Sub-Saharan Africa remains the most expensive region to send money to, with an 8.97% average cost. Cross-border payment innovations can help reduce operational costs for remittance service providers.”
The article talks about various distributed ledger technologies and their role in bringing the remittance and also mentions how xRapid is leading the path. Ripple’s xRapid has been at the forefront of bringing the benefits of DLT to traditional banking systems, where a significant number of banks are running the pilot project using the xRapid solution.
xRapid Bridging the Gap Between DLT and Traditional banks
The World Bank article makes special mention of the Ripple’s xRapid programme for the US-Mexico Border where the Ripple report concluded that the pilot programme saved 40-70 percent and payments taking only a few minutes rather than a couple of days.
Mercury FX, which uses xRapid reported that Ripple’s banking solution has helped the firm execute $1.8 billion in remittance. The reports acknowledge the role of DLT in helping improve our financial systems and there is much more to gain from the technology. Here is what the report reads,
“DLT-based cross-border payments potentially offer a promising pathway to dramatic improvements in the lives of millions of people in emerging economies. DLT could improve the traceability of remittances and reduce compliance costs for MTOs and supply chain payments, stimulating economic activity in destination countries.”
The report acknowledges that there will be challenges on the way of implementing the Distributed Ledger Technology across multiple jurisdictions and competing technologies, but the gains out of it are unparalleled.
Ripple despite the centralization argument has been making great strides doing what it does best, bringing more number of banks to use its xRapid solutions to help them execute a way faster transaction at minimal cost than the traditional banks.