Another Win For Ripple? Banks In Latin America Test Ripple’s Protocol For Cross-Border Payments, What This Means For XRP

Ripple News Today – Ripple is the company behind the world’s third largest blockchain. Over the years, the company has developed new protocols that are aimed at one thing; reinventing the current financial system. Unlike Bitcoin that intends to make banks and other financial institutions useless, Ripple intends to work side by side with these financial institutions by offering them advanced technology based on its decentralized ledger. Some of the protocols by Ripple are XRP, xRapid, xVia, and xCurrent. New reports show that some banks in Latin America are now testing Ripple’s xCurrent protocol. What does this mean for XRP?

Ripple News Today – XRP News Today – xCurrent Gains More Adoption Across Latin America

While Ripple has been able to get over 200 financial institutions to sign up on RippleNet, more clients are needed if the company is to reach mass adoption. Of all its protocols, the xCurrent is the most popular. xCurrent is a decentralized messaging app that banks can use to communicate with each other during cross-border transactions. It is cheaper than traditional messaging app and it is also faster. So far, getting clients to use xCurrent has proven easier than convincing clients to use xRapid. Ripple’s xRapid is a payment settlement protocol that uses XRP as liquidity.

Right now, two major banks in Latin America, Scotiabank Chile and Banesco Panamá are testing Ripple’s xCurrent. Per the report, Banesco Panamá is already consulting with regulators to make sure that this technology is fully compliant before activating it. The financial institution believes that more work needs to be done before the technology can be integrated fully. According to the report;

“Banesco is aiming to roll out the technology between the banks in its group – covering the Dominican Republic, Panama, Portugal, Puerto Rico, Spain and Venezuela.”

The proof of concept by the company involved the use of xCurrent for enabling fund transfer. However, the bank isn’t ready to use XRP for such a move at this time. It sees the use of XRP as a big step that it isn’t ready to take yet. However, after the integration of xCurrent is complete, Banesco is going to allow its users to perform blockchain-based fund transfers between banks that are in the group. The bank is going to enter deals with recipient banks regarding the exchange rates before proceeding.

The VP Digital Bank at Scotiabank Chile said that xCurrent is efficient and Peru is one place that would benefit from funds transfer using xCurrent. In his words;

“As soon as you do that, the process becomes a lot more efficient, a lot more effective. And you can start having almost one account. If you’ve got a small business in Chile with clients in Lima, they can deposit into an account that has the same number and it just gets transferred. But we’re not there yet.”

Ripple News – XRP News – XRP Current Price – What Does This Mean For XRP?

At the time of writing, the price of XRP was $0.462509. This means that it is down by 0.12% against the USD and down by 3.56% against BTC. The trading volume over a 24 hour period is $1,678,703,012 and the market capitalization is $19,687,414,729. Getting more people to use xCurrent may not have a direct impact on the price of XRP because XRP is only used as fees for xCurrent. However, when these banks see the benefit of xCurrent, they will be propelled to try xRapid. Also, the increase in awareness is good for Ripple generally. XRP will have what it takes to retest its all-time high and even move higher with mass adoption.

What do you think about the XRP prediction in our XRP news today? Share your thoughts in the comment section below.

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.


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