Ripple Senior Manager Hypes Up xRapid for Cross-Border XRP Token Payments
xRapid Is All About The Consumer Experience, Volatility Does Not Matter, Ripple Official Affirms
During a recent episode of Ripple Drop, one of the highlights was Ripple’s premier service called xRapid. If you follow cryptocurrency news, there is a good chance that you might have heard about it. xRapid is a service that provides fast cross-border payments.
xRapid Is About Consumer Experience
According to the Senior Manager for Infrastructure Partnerships for XRP markets, Marcos Fernandez, has spoken about the product and the recent move from the company to strengthen its ecosystem. This will be made with a partnership with three other exchanges: Bittrex, Coins.ph and Bitso.
These partnerships will be very important for Ripple and xRapid, as the program relies on liquidity pools that can be provided by these digital asset exchanges. Therefore, the three institutions will be very important to Ripple.
The Chief Market Strategist of the company, Cory Johnson, has explained that the choice for these exchanges was primarily because their geographical locations. He also spoke that the Philippines and Mexico receive a high number of remittances.
According to him, the Philippines averages a total of $31billion USD worth in remittances while Mexico is about $28 million USD. Most of the money comes from the United States. According to Fernandez, high fees can be a problem and they cause a lower volume in remittances.
Most people need to send money to their families in other countries and they could save a lot of money if the fees could be lower. Some of them send some savings like $20 or $200 USD, so solving these really small-scale remittances is the type of problem that is very important for Ripple to solve if it wants to be successful in business.
As there is a lot of unbanked people in the Philippines and in Mexico, you have to pay additional fees just to reach these people and a lot of people is lost to the middlemen in the process. This could ensure the growth of the product in the future and bring many advantages to its users.
According to the officials from Ripple, the company intends to scale its project as it goes along and this will be made with the help of several partnerships that the company will make in the near future as it expands its business.
Even though the technology is being pitched to the financial institutions instead of the final consumers and will help banks, Ripple believes that this will have a very beneficial effect in this people anyway as it will provide them with options and to help them to save some of the money that they are sending.
In the end, as the process is scaled and it grows, people will notice an important difference in their savings as they will be able to send more money to their families. Three to four meals a month can really make a difference for a poor family in a poor country, so it is important to help these people and to create a platform that serves them.
Ripple’s Volatility Will Not Be An Issue
Cory Johnson has also spoken about an important issue that plagues the crypto world: volatility. As you should know, the cryptocurrency markets are very volatile, so this causes a lot of problems for the users. However, Johnson affirms that the volatility will not be a serious issue for xRapid.
According to Johnson, the second quarter has shown a big lack of volatility for the company, one of the smallest so rates so far. He believes that this happened mostly due to the reduction in market speculation, which happened because of the decline in the price of Bitcoin.
The official believes that with the Bitcoin bear market the investors that were only interested in speculating started to get away from the market and this had a positive effect on the volatility of almost all the tokens in the market.
Also, Johnson defends that, even if there is some degree of volatility, it would simply not affect the institutions a lot. As you do not hold the actual XRP for more than some minutes, companies would be hardly affected by how the prices change, as the major changes generally take some hours to occur.
This way, the banks could use XRP only for xRapid and, if they did not decide to actually hold the XRP for long, they would simply not be so affected.
Another issue that was spoken about was the general performance of XRP and the participation of the company in XRP trading. According to the officials, Ripple sold 74 million USD worth of Ripple during the last quarter. According to them, this is a very small percentage in a market that traded about 500 million USD every day.