Can Ripple’s xRapid Save Iran From The Stranglehold Of US Sanctions
Our regular readers will already be aware of the fact that Iran is constantly facing the wrath of US sanctions. Just last month, the US Congress passed its 18th resolution condemning the Iranian regime’s record of arbitrarily detaining and otherwise discriminating against members of the Baha’i faith and other religious and ethnic minorities. The bill was introduced which amongst numerous other things wanted Iran to stop their efforts in developing their own cryptocurrency.
Iran has plenty of cryptocurrency users. That’s why these sanctions could have huge effects on a significant portion of the crypto community. The European Commission said it’s seeking to launch “very soon” a special purpose vehicle to help European companies bypass U.S. sanctions on Iran. The EU, led by France, Germany, and the U.K., has struggled to find a government willing to host the vehicle, which risks drawing criticism from the American administration. Still, EU foreign policy chief Federica Mogherini had said in December that the SPV would be established by the start of 2019.
China and Russia are already involved in the SPV and countries like India and Turkey are soon expected to join. Even with the SPV, it is still very difficult for Iran to do business. The biggest problem being that the US dollar is the internationally recognized currency for global trade. Additionally, Swift is not allowed in Iran. This makes Ripple’s xRapid an existing solution to the problem.
xRapid is a payment solution created for payment providers and financial institutions, made with the intent to facilitate faster and cheaper cross-border payments by using the XRP’s ecosystem. xRapid has several advantages over SWIFT too.
First of all, It is extremely-extremely quick. It takes 2–4 seconds to transfer XRP using xRapid network globally. Secondly, it removes the need to convert currencies. For eg. using SWIFT if you have to transfer Iranian Rial to Indian Rupees then you had to convert IPR -> USD -> INR with several hops in between. With the use of xRapid, it would be IPR -> XRP -> INR, the same could be applied to all currencies even if the trading pair does not exist in the FOREX market.