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Ripple and xRapid Praised by the World Bank in Recent Article

Remember Monday's panic? Things are looking much better for cryptocurrency

The rise of the blockchain is revolutionizing the way
society interacts financially. Despite the substantial influence that
traditional services have, every new day serves to establish DLTs and the
cryptocurrencies as a robust and reliable substitute to fiat-based solutions,
to the point that there are already influential players who recognize the
increasing influence of these technologies.

On the 26th of March 2019, the World Bank published an article praising blockchain technologies and stressing that DLTs have the potential to positively impact the lives of millions of individuals, specially in countries with little economic development.

DLT-based cross-border payments potentially offer a promising pathway to dramatic improvements in the lives of millions of people in emerging economies. DLT could improve the traceability of remittances and reduce compliance costs for MTOs and supply chain payments, stimulating economic activity in destination countries.

The problem with traditional remittance systems is that they
are not at all efficient. The World Bank states that in the regions where
these services are most required, the costs are way higher:

Remittances are more expensive precisely in the corridors where they are needed most. Sub-Saharan Africa remains the most expensive region to send money to, with an 8.97% average cost.

Cross-border payment innovations can help reduce operational costs for remittance service providers.

The Blockchain is Changing The Remittance Business and Ripple is Leading That Revolution

The global remittances business reached about 642 billion dollars in 2018. In certain countries such as Nepal and Haiti, it even accounts for about a third of gross domestic product. The need to improve this service is a major issue.

The World Bank explained that certain technologies are
already being developed; however, it seemed particularly optimistic
about Ripple. According to the institution, the progress of xRapid (a Ripple
solution powered by XRP) is a successful experience, lowering the costs
associated with money transfers by up to 70%.

In 2018, Ripple, a FinTech company, piloted xRapid, a DLT-based cross-border payments solution, along the very competitive U.S.-Mexico corridor. Financial institutions involved in the pilot saved 40%-70% in foreign exchange costs, and the average payment times was just over two minutes. The transfer of funds on xRapid took two to three seconds, with most of the processing time explained by domestic payment rails and intermediary digital asset exchanges.

The figures provided by the World Bank are neither isolated nor subjective. As reported by Ethereum World News, a recen study by Blockdata also reached the same conclusion, explaining that a transaction with XRP is hundreds of times faster and cheaper than the most efficient means of remittances today.

The study showed that comparing the best fiat-based remittance services against any cryptocurrency transaction, “blockchain based transactions are on average 388 times faster and 127 times cheaper than traditional remittances”

The post Ripple and xRapid Praised by the World Bank in Recent Article appeared first on Ethereum World News.

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XRP, XLM and Bitshares Are Significantly Better for Remittances Than Any Fiat-based Solution, Blockdata Reports

Ramessa Online

The money
remittance business has proven to be extremely lucrative, especially in recent
years where fintechs have proven their ability to offer solutions that are much
more efficient and cost-effective than traditional money transfers through
banks.

However, the use of blockchain technologies could lead to the evolution of the payments business as a whole. And it’s not just a motto for enthusiasts: A report published by BlockData, revealed that cryptocurrencies are way better for money transfers now than any other financial service available in the market.

The
research explored the characteristics of the most important money transfer
services worldwide, and compared them to the features of 7 blockchains a)
focused on payment processing or b) have massively adopted cryptocurrencies.
The results were overwhelming:

“Blockchain based transactions are on average 388 times faster and 127 times cheaper than traditional remittances …

Blockchain technology solves multiple problems in the remittance industry, including high fees, long transaction times and the abundance of intermediaries.”

XRP, XLM and Bitshares: The Best options for Money Remittances

BlockData chose Bitcoin (BTC), Dash, Litecoin (LTC), Ether (ETH), Stellar Lumens (XLM), Ripple’s XRP and Bitshares (BTS) and compared them with services such as Western Union, MoneyGram, Transfast, Remitly, Ria, Transferwise, among others. The slowest blockchain of all (Bitcoin) proved to be hundreds of times faster than the most efficient remittance service of the chosen group. While traditional services need days and hours to process a payment, in the case of cryptocurrencies users speak of seconds to get the same results.

“Blockchain solutions and businesses are developing but are still relatively small,” the study says; However, the researchers were emphatic in pointing out that “Disruption can statistically meet the needs of over 3 billion people in low income countries”.

The report notes that the success of blockchain technologies is so evident that traditional payment processing services are evaluating the use of DLTs to improve their services, however instead of developing their own products, most rely on robust solutions such as XRP and XLM.

“Big corporations are looking to partner with blockchain startups to empower the evolution of remittances.

A number
of companies are using blockchain to innovate remittances. Core services
include global settlement systems, multi-use payment and storage applications,
crypto billing, lending, FX transfer, and credit scoring.”

The development of blockchain technologies has grown considerably despite the bearish trend in the cryptocurrency markets. According to statements of several important personalities from crypto-verse, it is very possible that 2019 will be one of the most important in the history of these technologies.

The post XRP, XLM and Bitshares Are Significantly Better for Remittances Than Any Fiat-based Solution, Blockdata Reports appeared first on Ethereum World News.

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‘Banks are in Fear of being Disrupted by New Technology,’ Says Ripple’s new CTO

The Ripple company recently promoted David Schwartz from being the company’s Chief Cryptographer to the firms Chief Technology Officer. Mr. Schwartz replaces Stefan Thomas who now currently runs Coil and the Codius smart contract platform.

In a statement after his new appointment, David Schwartz mentioned that:

Building a global network of financial institutions who are using blockchain-based solutions is no small task, but we have the technical folks at Ripple to make it a reality. We’re also going to hire a lot more of them.

David Schwartz is now tasked with further decentralizing the Ripple ledger as well as spearheading other technology projects at the company.

As part of letting the Ripple community become more familiar with David Schwartz, he sat down with fellow colleague, and Senior Vice President (SVP) of Product Management, Asheesha Birla, in an Ask Me Anything (AMA) session that is available on youtube.

In the AMA session, David Schwartz also shared his experience from his recent tour of Europe where he managed to talk to a lot of representatives from Banks. Schwartz is quoted as saying that:

I talked to a lot of banks and one of the things that I learned from banks that I didn’t really fully appreciate is that they are in fear of being disrupted by new technologies.

He would also add that:

Not necessarily blockchain…blockchain is not that high on their radar…it is probably only the quickest rising thing they perceive. But they are also getting squeezed by correspondent banks…non-bank payment companies that are taking lucrative business away from them. They have realized that they need to make investments in technology and there needs to be a change.

Ripple happens to be that new technology that will take banks to a new level. This level will allow them to compete with the up and coming competition in the banking industry.

David Schwartz would further elaborate on this when he said the following:

I think we’ve got the underlying technology heavily optimized for a payments use case and closely related use cases that involve movement of value…with what Ripple’s doing on the banking side, we’re trying to position XRP as a sort of intermediary asset that can provide liquidity between other assets.I think if those efforts are successful that’s gonna be a reason to use that asset if it’s more liquid and if it’s cheaper to transfer.

In conclusion, the Ripple company has identified a niche in the banking industry for providing new technologies to keep banks competitive as well as efficient for its customers. Ripple has firmly placed itself at the forefront of revolutionizing banking and cross-border payments.

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