Ripple's xRapid approved by Spanish banking giant BBVA

BBVA CEO is hopeful about Ripple after the bank reported a series of tests with the platform resulted in a success
15 March 2018   1025

BBVA, a behemoth in Spanish banking world reported to have successfully tested Ripple's DLT to make real money transfers. The tests concerned cross-border transactions within the territories of Europe and South America. These areas were carefully selected as BBVA has the most presence exactly in those countries. BBVA officials have claimed money transfer was without any particular issues and the operation completed rapid fast.

Mainly, BBVA is interested in innovation in cross-border payments, especially given its footprint in Europe, Mexico, USA and Latam. BBVA is an active participant in several initiatives in cross-border payments (and other areas where blockchain could be applicable) and in that context, did a project with Ripple in 2017 in order to glean learnings on the efficacy of cross-border payments in various contexts using money, not cryptocurrency. It also has carried a series of tests with blockchain consortia R3, Hyperledger and Ethereum Entreprise Alliance in order to get insights into the use of blockchain in the financial services sector.

 

Spokesperson, BBVA

The news was warmly welcomed by South American nations as the platform poses potential long-awaited renovation of the local financial infrastructure. The dramatic condition of the current infrastructure of the region yields up to a 3-4 day delay of bank transfers.

We think something really big is happening in this sector, and we want to be at the forefront. A successful string of moves can possibly catapult BBVA into the public eye within the US financial services sector.

 

Onur Genç

CEO, BBVA Compass

Ripple has recently gained a significant backup of the respected financial institutions like MoneyGram, Western Union, Fleetcor and now - BBVA.

Crypto Won't Replace Fiat, XRP CEO Says

But head of Ripple believes that cross-border payments are the sphere in which cryptocurrencies can be an ideal solution
05 September 2018   593

Ripple's CEO Brad Garlinghouse is convinced that the fiat currency will not lose relevance in the near future and called "senseless" the possible replacement of traditional currencies with digital assets. The future of crypto currency lies in cross-border transactions, Garlinghouse said in the Stanford Legal podcast. This is reported by CoinSpeaker.

I don’t think we’re going to be buying coffee at Starbucks with Bitcoin or XRP anytime soon. I think we’ve got to ask ourselves: What problem is that solving? You were talking about paying for the day spa bill and how you do that, but I think in some ways the friction – fiat currency, the US dollar in this case works pretty well, and so we need to make sure it’s better than that before we talk about it as a currency…
 

Brad Garlinghouse

CEO, Ripple

According to Garlinghouse, cryptocurrencies can be used in the st way in international payments and as a means of preserving value. This is especially true of crisis and weak economies, with a high level of inflation. He noted that the average annual inflation of the currencies of countries outside the G20 is about 6%.

There are economies where the fiat currency is at best a weak currency. And in those contexts, if I were a consumer experiencing hyperinflation – would you rather hold a cryptocurrency or your fiat currency? And in a lot of those cases, you’re seeing people take their dollars, or not dollars, pesos of various sorts, and saying, ‘I’d rather hold this because it’s a better asset to hold in terms of its potential appreciation and lack of inflation.
 

Brad Garlinghouse

CEO, Ripple

The head of Ripple stressed that cross-border payments are the sphere in which cryptocurrencies can be an ideal solution. He also noted the Ripple, which allows to conduct international transactions "almost in real time". This will help many companies save time and resources.

We had one of the largest banks in Australia, the CEO told me that 40% of all of their consumer wire transfers result in a customer service phone call. The frustrating thing for the bank is not only do they have to absorb the cost of taking a customer service phone call, they also deliver the news that they don’t know wait a couple more days it’ll probably be there.
 

Brad Garlinghouse

CEO, Ripple

Earlier, the Northern District Court of California rejected a class action lawsuit filed by investor Ryan Coffey against Ripple Labs Inc. on behalf of everyone who bought XRP tokens after January 1, 2013. The company was accused of illegally manipulating the price of XRP.