Royal Bank of Canada Praises Ripple For 46% Cheaper Costs Per Payment

Ripple Cheaper Than Banks By Up To 46%

Most of the equity studies are focused on short-term targets, usually one year. It is very rare that analysts concentrate on long-term prospects of crypto firms. RBC Capital Markets through its recent Imagine 2025 report has provided significant insights into some of the stocks that will dominate the future growth and innovation. The firm that its report will challenge asset managers and executives to think more creatively and expansively when considering crypto stocks, valuations and companies.

About Ripple

Ripple through its RippleNet platform connects payment providers, banks, corporates, and virtual assets exchanges to deliver a seamless experience of sending money globally. This blockchain payment platform also features a range of customized technology solutions that include payment process through xCurrent, payment access through xVia, and liquidity support through xRapid. RBC Capital believes that this type of comprehensive financial remittance solution as an excellent example of how the blockchain technology can disrupt this sector, mainly through its corresponding distributed ledger and utilization of the XRP token.

In this instance, the XRP tokens are used as the bridge assets, which means that they store a value that can be seamlessly transferred in between parties. This transfer of assets is done without relying on a central party, thus supporting liquidity between the currencies. The result is that banks can use XRP accounts for consolidating their cash rather than the alternative, which is to hold local currency inside bank accounts all over the world. Through making the direct link between XRP and domestic currencies, banks can limit their intermediaries.

Significant Cost Savings

The RBC capital markets study found that Ripple was 46% cheap than banks regarding various costs including payment processing, treasury costs, counterparty fees, and reconciliation costs. Here is a breakdown of the benefits of Ripple as compared to regular banks:

Price: The RippleNet platform offers better transparency of virtual forex fees and rates even before the transactions are originated. The result is that it reduces the costs for every payment made by financial institutions.

Speed: The transactions that are processed through the Ripple platform occur instantaneously at any time of the day and with instant receipt confirmation. Where banks can take up to five days to handle transfers, Ripple transactions can occur within seconds.

Transparency: Ripple also offers better openness to allow clients to track funds easily, which is not adequately available when doing inter-bank or cross-border payments.

Conclusion

Most consumers today are still using the traditional financial channels like commercial banks and retail money operators like MoneyGram or Western Union. Also, the preferred options for C2C transfers have been PayPal and TransferWise. Nevertheless, RBC believes that blockchain can address all the numerous pain points in the remittance industry through reducing intermediaries, better transparency and decreasing costs, hence why Ripple is significantly cheaper than banks.

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Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

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