Ripple wants all banks to be their clients. Everybody knows that the company wants to be the new SWIFT, the current payment provider for international transfers, so it is important for Ripple to show to the banks and investors what they can do.
In the latest episode of The Ripple Drop, the vice president of Product Marketing of the company, Kevin Mole, talked about the on-demand liquidity tool created by Ripple can be used to send quick payments which will also be very low-cost. According to him, this new kind of liquidity tool can be a “huge value proposition” for the company.
According to him, the on-demand liquidity provided by services such as xRapid will make transactions cheaper than ever for investors. The XRP Ledger is settled every three or five seconds, which can be considered very fast when you compare it to traditional settlements.
If you want to understand how fast this is, you should know that cross-border transactions used to take two to three days to be made before. Fortunately, now they do not take so long anymore if you use this service.
Mole believes that traditional services are simply way too slow. People need a faster experience today and for institutions, this is even more important as some of them will make transactions on a daily basis, unlike retail customers, which will not do them so often.
It is the on-demand liquidity that is responsible for such quick trades. The service is, for instance, already able to be done between Mexico and the Philippines. These two countries receive a lot of remittances from Europe and the U. S.
While Mexico receives around $31 billion USD in a year, the Philippines received $33 million USD. These are far from insignificant numbers and it means a lot that these transactions can be really fast.
Mole believes that, with a new and more efficient system such as the one being implemented by Ripple, cross-border transfers can become much quicker and widespread. In the end, he believes, this kind of efficiency is what will make XRP the global bridge that will link the world.