Japan and Korea to launch XRP-based cross-border payments

Next spring Japanese financial institutions will begin remittance experiments with Korean banks using the technology of Ripple
12 December 2017   2609

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

BTC is Better For Global Remittances Than XRP - Bitspark

CEO George Harrap is sure that the first cryptocurrency is much more practical because it is accepted by much more companies to pay
28 May 2019   222

The head of Bitspark, George Harrap, expressed the opinion that Bitcoin is better suited for cross-border payments than the Ripple's XRP token, which was specifically designed for this purpose, Crypto Briefing reports.

In particular, Harrap is sure that the first cryptocurrency is much more practical because it is accepted by much more companies to pay. At the same time, various services use XRP rarely because of its insufficient liquidity when exchanging for fiat currencies. This situation makes the Ripple token expensive to pay.

Bitspark researchers have published a report that assesses the suitability of various cryptocurrencies for making international payments. Thus, experts assigned Bitcoin and Ethereum “medium degree of suitability”. At the same time Stellar, thanks to the built-in decentralized exchange and the convenience of issuing stablecoins, received a higher mark.

The xRapid and xCurrent solutions, where the XRP token is used, are assigned a low degree of suitability due to their low liquidity when interacting with fiat money. In particular, according to Harrap, xRapid is convenient for operations with one currency, however, interaction with several monetary units is fraught with considerable difficulties. For example, an attempt to convert US dollars to Kenyan shillings will require payment routing through various channels and, possibly, conversion into various currencies, which translates into significant commissions.

The number of Ripple gateways that exist hasn’t changed in four years and basically consists of bitcoin exchanges for people to speculate on the price of XRP for BTC. None of these companies are remittance companies, nor are they using XRP for its intended purpose.

George Harrap

Head, Bitspark

Also in the company's report says that despite the low rate of transactions, the level of mass adoption of bitcoin is high, and it is more often used in payments than XRP.

There are no liquid Nigerian naira (NGN) and Ethereum (ETH) market, EOS and Vietnamese dong or XRP and Philippine peso markets. The only market which has sufficient liquidity and people willing to provide a local currency in exchange for a cryptocurrency is usually bitcoin.

George Harrap

Head, Bitspark

CoinMetrics researchers recently revealed a discrepancy of $ 84 million in Ripple reporting and XRP blockchain data.