Apart from the XRP sitting comfortably as the third largest cryptocurrency in the market today, Ripple has a few other achievements that might dwarf many other cryptocurrency and blockchain firms. Its RippleNet boasts of hundreds of partners, mostly financial institutions, who already consistently use the firm’s framework to facilitate transactions to and from pretty much any region in the world. Using xRapid for example, some firms have already announced interesting and positive results from Ripple’s solutions.
Ripple Is Too Expensive
Western Union is one of the world’s payment giants and have expressed some curiosity with Ripple. A while ago, the company even tried using xRapid to settle some of its payments. However, in a recent panel discussion, Hikmet Ersek – the company’s CEO – Has highlighted a major problem the company had during their xRapid experiment.
According to the CEO, using Ripple’s solution did not really help Western Union’s processes become any faster. He mentioned that settling transactions through Ripple made their settlement process at least five times more expensive. According to him, Western Union’s current method is still a lot cheaper.
Western Union Still Has Faith In Crypto
However even with this roadblock, Western Union is still very enthusiastic about blockchain technology and the company still has a team solely focused on blockchain and cryptocurrency. He mentioned during the discussion that cryptocurrencies are a great way to process and settle payments and are definitely here to stay.
So far, Ersek is sure that the company’s present payment system is efficient in ways that can’t really be matched by other payment companies. He does mention that the company is still eager to incorporate new innovations if it means that their processes will be a lot cheaper.
Speaking on this, the CEO said
“Look, hey, I’m open to any cost savings innovation and I’m there to even sign a deal tomorrow.”
Cryptocurrency Mainstream Adoption
Whether or not Western Union circles back to using cryptocurrency solutions, there is a growing interest in the sector from mainstream institutions. Apart from the recent Facebook announcement, other heavy hitters like Morgan Stanley, JP Morgan and Goldman Sachs are companies who have indicated interest and even tried their hands on it. The list extend to companies who are now officially accepting cryptocurrency payments for all or some of their services rendered including Microsoft, Expedia, Overstock, KFC Canada, Subway, AT&T and many more.
There are also quite a few central banks who are working on floating their own Central Bank Digital Currency (CBDC).