International cross border payment options are without a doubt one of the most significant uses of digital currencies.
Cryptocurrency payments options are a lot more faster than the the traditional payment methods, because third party intermediaries are cut out of the process.
Commercial banks as well as central banks around the world have started exploring the application of blockchain tech in cross border payment methods. But forerunners are still yet to be established.
Dlt In Canada And Singapore
The trial phase of cross border payment options using DLT (Distributed Ledger Technology) have recently been concluded in Canada and Singapore with Corda and Quorum (JP Morgan) respectively.
In January, during the World Economic Forum in Switzerland, it was announced that a number of central banks are considering the use of DLT to improve “banking and payments system efficiency, payments security and resilience, financial inclusion and more.”
Ripple Labs is at the moment the forerunner of the cross border payment options with claims of over 200 banks as members of the RippleNet platform using the xCurrent and xRapid services with the XRP token. However, they are beginning to see competitors for this top spot.
The JPM Coin
The CEO of JP Morgan, Jamie Dimon, in February announced the development of the JPM coin a dollar pegged digital asset created for their wholesale banking clients.
The JPM token is based a closed network permission blockchain, which is frowned upon by many in the crypto community. JPMorgan, however, sees this network type as a strength and not a weakness.
With the JPM coin being dollar pegged, the instability of the market will have little or no effect on the JPM coin as it does to XRP and other digital assets.
IBM’S World Wire
IBM recently announced it's World Wire, a platform for payments in the banking industry, with 6 banks already showing interest.
The platform uses the Stellar blockchain network for internal secure funds transfers within banks and the Stellar coin XLM is used for inter bank transfers.
The Dutch Bank ING, in January, announced its collaboration with R3, opening the bank to a variety of applications on the Corda blockchain.
The Universal Settler app, which uses XRP on the Corda blockchain is one of such available applications, in which if used for ING’s cross border payments will be an additional advantage for Ripple Labs in the cross border payment options race.
Coinbase: Fee Free XRP
Coinbase finally listed XRP as one of its supported digital assets in February, making fee free transfers of XRP and circle’s USDC between Coinbase users.
This decision by Coinbase to remove charges from internal XRP and USDC transactions will be beneficial to both Ripple Labs and Coinbase.
Since smaller transaction amounts will benefit more from this XRP free transfers, funds transfers to the Philippines will be a lot more common, increasing the global adoption of XRP and Coinbase.
Easier and Cheaper
International cross border payment options are getting cheaper and easier with cryptocurrencies and will soon become the standard in the financial sector.
Since Ripple’s main competitors in the decentralized payment options race are mainly bank issued assets and stablecoins, they still have an advantage over many other companies.