Ripple (XRP) is one of the cryptocurrency preferred by banks and financial institutions because (XRP) provides fast and cheaper cross-border transaction services than traditional bank methods. XRP payment protocols have been used by several banks to perform this service. xRapid is one of the anticipated Ripple products because it provides higher liquidity in cross-border payments by utilizing XRP. This project has been validated for a long time, not only that, 19 financial institutions have tested this fantastic product.
Progress in cross-border payment systems
Payments between countries are very expensive and time consuming, shipping between Bank Central to POSB in Singapore takes 1 week. Many companies such as Western Union, Money Transfer strive to reduce transactional and time costs. You can use services like Paypal, this is very fast but takes a lot of money. Because banks have a centralized nature, trust and security between countries is very low and reducing costs is a challenge for companies engaged in this field.
However, with the Blockchain based payment system, scalability is extraordinary and reduces a lot of costs. Banks and financial institutions must always update their systems with the latest ones such as blockchain technology. If they fail with the adoption of a new system, the company will lag behind competitors.
How does xRapid change traditional banks?
xRapid provides higher liquidity, through the use of XRP between various fiat currencies around the world. Example: Sending regional currencies to America (USD).
- The number of regional currencies must be confirmed.
- xRapid handles this process
- Regional currencies will be converted to XRP
- The amount of XRP will be converted again to USD
If you use a central bank, you need several days, but xRapid only takes a few hours and the price of this transaction is cheaper. However, XRP has not yet told how much XRP will be used. We can be sure that XRP is one of the cryptocurrency that will be used by banks and financial institutions for transactions between countries.
Response from the company about xRapid
Some companies have used xRapid as their payment trial and the results have been very satisfying. They concluded that they had experienced a 40-70% decrease in transaction costs which was a huge change factor. In the financial industry. Momentum that increases with the subsidized transaction costs will provide enormous liquidity. Transparency is also considered to comply with legal obligations.