Ripple Insight: The role of Blockchain and digital assets such as XRP in real-time payments
When the COVID-19 pandemic took place, people realized the importance of digital payments and real-time payments. This new model has been around for a long time, thanks to the increasing digitization of our world.
Ripple’s @ashgoblue reflects on the current global payments landscape and shares why financial institutions that are able to provide real-time payment methods now are well-positioned as leaders beyond the current crisis. https://t.co/2wiD8IUpdH
— Ripple (@Ripple) June 22, 2020
What is real-time payments?
Real-time payment is a form of payment that combines speed, data, and communication to make payments in seconds. They give users instant access to their money and instant confirmation of transactions while providing near-instant payment accounts.
The demand for real-time payments appears to be more reliable as billions of people today have access to information and experiences on-the-go available in various touchpoints and channels. Digitization around the world has highlighted the need for more efficient ways to pay. But in the global health crisis and economic ramifications leading to it, millions of people are facing less stable incomes, and many businesses are facing declining profits while still having to take significant financial responsibility.
When the COVID-19 pandemic took place, people were unable to use fiat to pay. At this time, payment in real-time through specialized and convenient payment applications is more developed. It provides fiat directness and reliability while empowering users with seamless payment capabilities in an increasingly digital world.
The role of Blockchain and cryptocurrency in real-time payment
To indeed turn widespread real-time payments into reality, Blockchain and cryptocurrency need to be leveraged as an important component to accelerate the payment process. Blockchain allows businesses and financial institutions to transact and accept direct payments, eliminating the need for an online intermediary like SWIFT.
In particular, RippleNet is the infrastructure layer to transition technology faster for global payments. Built on blockchain technology, RippleNet eliminates the complexity currently constraining the payment process today and makes cost-effective cross-border payments possible in seconds.
Financial institutions using RippleNet also have access to their On-Demand Liquidation (ODL) service. ODL eliminates complex IOU infrastructure by allowing financial institutions to take advantage of XRP ledgers and digital assets as an immediate means of payment to avoid funding. This frees up their capital and ensures competitive foreign exchange rates.
And now, XRP acts as a bridge between the two currencies, ensuring payments are delivered and received in local currencies of a certain region or users quickly. In fact, using RippleNet can cut the payment time for cross-border payments from three days to three seconds.
Report from Ripple stated:
“Blockchain technology and digital assets like XRP can fundamentally reshape the entire finance industry while providing a new, better, more instantaneous payment settlement method for financial institutions and consumers alike.”
Banks and financial institutions that can provide these real-time payment methods, especially to reduce unforeseen and unforeseen pain points from the COVID-19 pandemic, will be well-positioned when innovators and leaders overcome the current crisis.
However, this is only Ripple’s technology, and we cannot deny that whether RippleNet has developed or how strongly ODL is applied, XRP price is still a problematic factor to be promoted.
- SBI Ripple Asia Is Successfully Testing On-Demand Liquidity And Plans To Go Into Production This Year And Next Year
- The Bearish Price Action Recent Days Has Allowed XRP Price To Print A Macro Bull Signal