Ripple for Banks: Here’s How XRP Coins are Used as a Payments and Settlements System
Even though Ripple has been criticized for its pre-mined coins, banking influence, and centralization qualities, the platform – on the upside – has done a positive job with speed and reducing cross-border payment costs.
Ripple is also focused on boosting demand for Ripple XRP and one way it is doing that is through its rapid settlement technology. The technology allows for quick payment systems. Not only are everyday users attracted to such technology, but banks are too. The components of the technology that are attracting banks include xCurrent and xVia, and these don’t require specific use of XRP.
xRapid is meant to enhance processing time of global payments and to mitigate costs as well. The cross-border payments become instant through XRP technology. Currently financial institutions that have adopted xRapid into their operations have experienced significant savings – around 40 to 70 percent. Further, on average, an xRapid payment can take around two minutes. Some of the transfer is based on the XRP ledger as well, and it accounts for a few seconds of the process.
The entire payment journey is interesting as well. Banking entities will connect to asset exchanges, which will exchange the original currency to the one in which the final payment is in. AT the completion of the transaction, funds are dispersed. The best quality about the transaction is that it can be tracked at every stage of the process and it is affordable as well.