Ripple Targets Chinese Markets With It’s Blockchain Tech for Cross-Boarder Payments
Ripple Is Targeting China With Blockchain-Based Payments Tech
According to Jeremy Light, the vice president of the European Union strategic accounts at Ripple, China is definitely a country in which Ripple is interested, as it might be a good idea for the company to help the country to speed up cross-border payments.
The company has already struck a deal with LianLian International, a Hong Kong-based financial firm. The deal was to help in cross-border payments between China, the United States and Europe using Ripple’s technology. However, it is still not clear whether the technology is being used right now or not yet.
The blockchain technology, which is also known as distributed ledger technology, underpins Bitcoin and all other cryptocurrencies. Instead of using a centralized way to record transactions, the blockchain records them on the public ledger which is validated independently by miners or stakers.
Still A Long Way Before Ripple Enters China For Good
As China has banned all the Initial Coin Offerings (ICOs) and has clamped down on trading virtual currencies, it would be hard for Ripple to make the country’s citizens adopt its XRP tokens. The main way for the plan to work would be to have more financial institutions as partners in the country.
At the moment, Ripple already has partnerships with more than 100 financial institutions all over the world, which include Santander, UniCredit, Standard Chartered and UBS and other important banks, but only one in China. With a single Chinese client, it will surely be a harsh road for Ripple there.
As the country is home to many financial firms, though, like Ant Financial’s Alipay or Tencent’s WeChat Pay, there are also strong competitors there, which is not a great outlook for Ripple. Ripple has had more success in near countries, though, as it has launched Money Tap in Japan in a partnership with 61 domestic lenders.
However, most banks and firms are still interested in the cryptocurrency side of the company. The main reason why people make partnerships with Ripple is to use the systems that allow for bridging payments abroad or for different currencies.
The xCurrent product is pretty popular, unlike the XRP tokens. The service, which is aimed at settling payments instantly around the whole world, has been far more successful than the XRP tokens as a currency alone.
Another Ripple product that has seen its fair share of interest is xRapid, the platform on which XRP is used. Companies like the Western Union and MoneyGram are already using it for fast money transfers. At the moment, unfortunately, both these services are still in what can be considered a trial phase, which might a be a reason why Ripple has not been yet 100% successful.
There is also the fears of volatility issues that cryptos generally have and the bear trend of the market against Ripple getting mainstream adoption with banks and other financial institutions. Ripple saw its price drop from $3.81 USD last year to just 29 cents right now, a drop of more than 90%. All these issues may get in the way of the company.