Ripple Insight: Coss-border payments are on the cusp of transformation – time to revolutionize it is now
Based on the Ripple Insight study of “The Role of Blockchain and Digital Assets in Cross-Border Payments,” the fragmented landscape of cross-border payments is being redefined thanks to the power of ISO standardization and approach new technology of RippleNet.
— Ripple (@Ripple) September 9, 2020
Ripple Insight: Ripple remains the leader in cross-border remittances
Everyone knows cross-border payments are on the move. Blockchain technology and cryptocurrency can make a cross-border payment experience easier. In it, we cannot fail to mention Ripple. Their Blockchain allows for global payments and provides money to move in the same way that information is nowadays – digitally and instantly.
Furthermore, Ripple is also strengthening cooperation with many banks and payment providers to modernize legacy systems using Blockchain and cryptocurrency to make it easy, fast, and easy to send money around the world more reliable.
But being able to send immediate cross-border payments doesn’t solve the whole problem. This is because the money needs to be deposited into the correct account in the right country at the right time to allow payments to flow. The need to top-up these accounts is called Liquidity Problems and is one of the causes of the cross-border payment deadlock. To solve this problem, Ripple has developed a solution called Liquidity on Demand (ODL) that uses the XRP digital asset to allow funds to be sent to the target account immediately – literally upon request, instead of a few days earlier.
In this way, XRP is especially useful in making cross-border payments faster, more efficient, and less expensive. XRP acts as a bridge between two different currencies, ensuring that payments are delivered and received in the user’s local currency or specific geographic area instantly.
RippleNet is a decentralized global payments network that can send and settle global payments on-demand, using membership-approved rules and standards, and conforms to ISO 20022. In this way, RippleNet can cut settlement times for cross-border payments from three days to just three seconds, making the process easy.
The market is increasingly interested in cryptocurrencies and cross-border payments
So far, the cryptocurrency market has been relatively monopolistic and somewhat manipulated by figures with high net worth. However, a growing number of indicators show that institutions are entering this market. Recently, the crypto market has seen an ATH in the open interest of futures contracts at institutions like the Chicago Mercantile Exchange.
According to Fidelity Digital Assets, based on a survey model of 800 institutional investors, it can be seen that nearly 80% of them feel attractive about cryptocurrencies. Such as the possibility of high prices and lack of correlation with other asset classes. Even longtime crypto dissidents like macro investor Paul Tudor Jones recently jumped into cryptocurrencies due to the COVID-19 pandemic. He believes that quantitative easing will lead to inflation and sees Bitcoin as one of the best inflation hedge measures.
What’s even more interesting, however, is that 60% of respondents believe cryptocurrencies have a place in their portfolios. That is a considerable amount when you think the survey was conducted before the pandemic. The role of digital assets in the post-COVID-19 world is something that is increasingly gaining attention and attracting, alongside gold.
And while Bitcoin or cryptocurrency is often seen as a more risky investment, gold is not used in the industry more than cryptocurrency. It is all about the value people place in them. The fact that digital assets can provide tangible services like cross-border payments means that many investors now realize their value, instilling a level of market confidence in these assets.
The cross-border payments industry is currently at an inflection point.
For the millions of remitters, small businesses, and emerging digital markets, the speed and cost matters. Delays in payment time can seriously affect people’s livelihoods. Everything from covering substantial medical expenses in an emergency to paying tuition fees can be derailed by an outdated and overly complicated cross-border payment system.
Banks and financial institutions can bring cross-border payment methods into the modern world and provide a genuinely frictionless experience, minimizing many of the difficulties consumers are facing today will become the leaders in tomorrow’s global payments industry.
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