You have probably heard about Ripple, right? This cryptocurrency has a gigantic presence in the market and is constantly among the top currencies of the moment. Created by the Ripple Company, the Ripple protocol uses an open source internet protocol and a consensus ledger and is one of most important cryptos ever.
Recently, Ripple has devised a new system for international payments called xRapid. This new system can be used for the international remittance of money and it is said to make transactions that could last 3 to 5 days before take only a couple of seconds.
What Is Ripple’s xRapid?
xRapid is a new solution for international payments devised by the Ripple Company. The software allows companies to minimize their liquidity costs while making more efficient transactions and this technology is powered by Ripple (XRP). This way, it allows companies to send money faster and with a considerably lower cost than the current SWIFT standard that is used by most banks.
How Does Ripple’s xRapid Work?
This technology can be used for financial institutions that wish to connect directly with digital asset exchanges to use XRP to have enough liquidity to make faster payments. Basically, the software uses the Ripple platform instead of fiat currency, which provides a whole new level of liquidity.
The conversion from fiat to XRP and from XRP to fiat again is very simple and fast, which not only speeds up the process but can also result in saving 60 to 70% of the costs that it would normally take to make the transactions.
xRapid was specially developed by Ripple to connect financial institutions using the blockchain. The company has partnered with banks all over the world to implement this new system and the early adopters of the technology are sure to get a competitive advantage in the market, stated Asheesh Birla, Senior Vice President of Product at Ripple.
What Does Currencies Direct Say About xRapid?
Currencies Direct, which is a foreign exchange broker located in the United Kingdom, has become the first financial institution in Europe to use Xrapid and complete an overseas payment transfer using this system. By using the platform, the company had some thoughts about how the new system works.
For starters, xRapid enabled a transaction that normally could take up to 5 days to be made in seconds. Brian Harris, which is the Chief Product Officer at Currencies Direct, stated that the trial was a complete success and that using XRP could be a game changer, as the fast payments improve the service a lot.
Harris is a defensor of the cryptocurrencies as a way to transfer money instead of a store of value. This way, a seamless experience could be provided for the customer instead of all the stress and the volatility of cryptocurrency trading.
The success of the experiment means that Currencies Direct will continue to use the xRapid technology to transact using Ripple and make faster and cheaper transactions for their clients.
The Ripple’s xRapid Conclusion
It is not a surprise that xRapid is very efficient and that Ripple really got it right. Solutions like this one can be the future of international remittances of money. Our guess is that you will still hear a lot about Ripple and xRapid in the future and the fact that the company was one of the first companies to act in this area might represent a lot for it in the future.