The Nikkei, one of the world's largest financial newspapers headquatered in Japan, has reported on December 12 that the Japanese financial institutions, such as SMBC and Resona Bank, are going to launch cross-border transactions with Korean major banks in spring of 2018. The remittance experiments will be based on the technology of Ripple cryptocurrency.
Blockchain technology will be used for multiple transactions and for the participants to share and verify transaction history. This technology is expected to be the trigger for nearly 30% reduction of transaction cost, and for making overseas payments much faster as the users will be able to receive transfer the same day it was made. Cross-border payments between Japan and Korea are claimed to start in spring of 2018.
As it was stated, at first the blockchain technology of Ripple will be used for such transactions, but ultimately the banks aspire to use the XRP currency itself. Once JPY is available to be converted into the virtual currency, the cost of transactions will possibly be reduced by 60% in comparison with the current costs.
It was also reported that Japanese financial services have already finished development of the system and the demonstration experiment is scheduled for the end of January of 2018.
The news were followed by a surge of Ripple price, which rose almost 3% within one hour which consequently lead to the mark of 13% increase within past 24 hours. The price of the coin continues to grow.
At the moment of press, these are main market parameters of Ripple:
- Average price: $0.27
- Marketcap: $10 695 451 762
- 24h volume: $390 910 000