Ripple’s executive, Navin Gupta, managing director for South Asia and MENA regions, spoke in an hour-long YouTube video explaining the blockchain’s use cases and its progress so far in 2020.
In data provided by the startup executive, Ripple currently has over 350 partners in its ranks, including RakBank in the UAE and Transfer Go in the U.K.
Over the past seven months, Ripple has welcomed over 50 financial institutions using its settlement platform. Navin said:
“Ripple is one of the largest blockchain companies in the world which is in production. We have around 350 financial institutions that use our technology every day.”
Blockchain technology has been revered as the solution to accounting and trust issues on legacy financial systems such as “reconciling accounts without the need for a third party.”
A Solution to Legacy Financial Systems
According to Navin, Ripple aims at reducing the latency and speed problems that financial systems face allowing users to send money as quickly as they send emails. Ripple also minimizes the cost of each transaction to a few cents, curbing the exorbitant fees charged by international money transfer systems, which is also a big issue in hindering international remittances.
“With money, there’s a lot of friction. There is about $1.6 trillion that gets spent in fees when money is moving across international borders [annually] – the total value sent internationally is about $27 trillion”
Navin explained the problems money transfer systems face at the moment.
“We want money to move the way information moves.”
Ripple’s tech systems, as explained before, are aimed at reducing the overall transfer times from days in the legacy system to only a matter of seconds. All this, while ensuring al verification details are correct, and AML compliance regulations are met, Navin said.
Ripple’s Micropayments Solution
Across the globe, there are tens, if not hundreds of payment platforms that Ripple competes with. Top of the list is global payment services like SWIFT, UBS, and PayPal. All of which the fourth-largest blockchain aims to dethrone. One of the critical features that Avin believes sets Ripple apart from its competition is micropayments.
“We believe micropayments of five cents, ten cents, and even a cent is something that will see a huge use case in the coming two or three years.”
On the future of the crypto industry in general, Navin believes the current highly “speculative crypto market” will shift its tide to a more utility-based use case. Most of the current digital currencies will die out if they do not build real-world use cases.