Recently it was revealed that Ripple is going into a partnership with MoneyGram. Experts and proponents alike have weighed in regarding how the partnership will benefit the digital currency space. Now, the global head of banking at Ripple has given a breakdown of how the network’s partnership with MoneyGram means good news for the ecosystem. Marjan Delatinne is Ripple’s head of banking around the globe.
Delatinne: MoneyGram Has a Big Footprint in Remittance Business
Marjan Delatinne, the Global Head of Banking at Ripple, weighed in on the benefits of the partnership, during the Global Blockchain Summit. While also addressing some of the questions by the people who make up the crypto community.
Per the report, Delatinne said the development that most relevant for Ripple happened in the past week. According to the Ripple executive, the most significant development for Ripple is the network’s partnership with MoneyGram. In her words:
“MoneyGram is arguably one of the largest remittance and payment service provider around the world. It has a huge footprint on remittance businesses, and most importantly, it will use one of Ripple’s key products, to transfer funds, which is Ripple’s xRapid.”
New Initiative Allows xRapid to Launch on a Large Scale
After calling MoneyGram one of the largest remittance firms in the world, Delatinne said the initiative would be an excellent opportunity for Ripple’s, xRapid, a much-awaited offering from Ripple to take-off fully on a large scale. xRapid has brought some level of excitement among many retailers who hold XRP. This is actually the main ingredient for the xRapid product to work. It is also expected that the price of XRP will multiply as a result of the adoption of Ripple’s xRapid.
Since Delatinne and the other Ripple officials have confirmed that MoneyGram is going to be using xRapid, this would be a steppingstone to a large scale of the xRapid. MoneyGram transferred a impressive $20+ billion in remittances in 2018.
Delatinne also added that:
“But we do not talk enough about the issue of liquidity. Which is where the actual cost of cross-border transfers exists. Today trillions of USD are tied in pre-funded accounts all over the world by banks to make sure the exchange of value in the banking system continues to happen. The use case we have around the xRapid is, rather than tying capital, we reconcile transfer of messages and value itself. xRapid is all about on-demand liquidity.”
Most Financial Institutions are Hungry For Change
The Ripple global head of banking also added that most banks and a host of financial institutions are still using archaic systems. Although they are hungry for a change of system. In order to maintain a competitive edge in the consistently growing industry. When speaking about the Swift protocol, Delatinne stated that both Ripple and Swift aren’t competitors. According to her Swift “has its value and we can only be complementary towards it. It comes back to what’s best for the crypto community and the ways that they can take advantage of the two offerings.”