Ripple (XRP) is one of the most valuable digital currencies in the world. In fact, it is the third largest digital currency in the world based on market cap. The coin has a promising future, and this is why a lot of investors are around it – despite the fact that its value is not relatively large.
Recently, the digital currency firm, Ripple, released a new set of numbers on several pilot tests that they carried out on xRapid – the real-time payment platform of the firm that utilizes XRP tokens to vividly increase the speed of international transactions and provide on-demand liquidity.
The Results of the Pilot Tests
For settlements between Mexico and the United States, the company confirmed that banks that are using xRapid saved forty to seventy percent on what they would normally pay foreign exchange brokers. Here’s a detailed information on what this means for potential savings on international settlements every year.
About $600 billion in cross-border settlements are sent from loved ones to their relatives in their countries every year, at an estimated cost of around $30 billion. Applying the estimated savings of the yearly transactions when using the xRapid of Ripple shows a savings of about $12 – $21 billion per year.
Ripple has also broken the number down further, and they said the average cost savings for every remittance is 55 percent. This is indeed a great innovation, as it could greatly reduce the cost of sending money abroad. Not only will xRapid save more money when making cross-border payments, it will also save you a lot of time, as it is fast and it takes lesser time than other kinds of cross-border payments.
This is one of the major reasons why digital currency stands out in the market, and an increase in the adoption of its product will also increase the value of the coin in the long run.