Two Latin American Banks Are Interested In A Partnership With Ripple to Use xCurrent and xRapid
On June 19th and 20th Fortune Brainstorm Finance Conference was held in New York. It brought together the established giants of Wall Street and the up-and-coming new guard of fintech, blockchain, and venture finance to explore–and shape–the future of finance. As a result of this conference, reportedly, Banesco Panama and Scotiabank Chile are testing cross border payments with Ripple.
Both Banesco Panama and Scotiabank Chile have recently run proofs of concept for cross-border payments with Ripple. Executives of the banks said:
“The tests helped them identify what needs to be done to fully implement blockchain for cross-border payments – and opened their eyes to the potential.”
Banesco Panama is looking to roll out the technology between the banks in its group – covering the Dominican Republic, Panama, Portugal, Puerto Rico, Spain, and Venezuela. Notably, a month ago, it ran a proof of concept by sending a single transfer from Panama to Peruvian bank Intergroup. The test run gave both Banesco and the Panamanian banking regulator a better look at blockchain for cross-border payments.
Rodrigo González, executive vice president for innovation and transformation, at Banesco Panamá was impressed by the traceability and speed of the test transfer. He said:
“It gives you traceability, and arrives directly, anywhere in the world. Now we are working on a minimum viable product.”
The second bank to run a POC with Ripple was Scotiabank Chile. Scotiabank (Canada) was one of the 12 banks in the R3 consortium to trial XRP for cross border payments back in October 2016.
Daniel Kennedy a correspondent at the firm said:
“What we identified was that Ripple technology works really well. The bank’s technology was not ready to “plug in” to blockchain and achieve our expected efficiencies. So we ended up having two messaging layers: The Ripple messaging layer, which is only messaging, and the bank’s transfer layer for sending funds. Our transfer layer could not be replaced, in this instance, by blockchain.”