Ripple is one of the fastest growing cryptocurrencies in the world, however; it experienced a major crash last year occasioned by stringent regulations by the South Korean Government. As at 2nd February 2018, the unit cost of Ripple was valued at €0.60 despite the fact that it dipped to €0.48 last year.
Ripple, with currency symbol XRP, took the world of cryptocurrency by storm, soaring under a year from as low as $0.01 to $1 per unit cost. Ripple doubles both as a cryptocurrency, XRP, as well as a payment network, RippleNet.
The payment network enables transfer of any currency to other currencies within few seconds to any part of the world. Ripple is working with financial institutions to offering a cost-effective way of making payment irrespective of location. With this development, it is now possible to make a direct transfer of currency from China to the United States. The process is simple; CNY can be traded to the Ripple currency, XRP. After trading CNY to XRP, it will then be transferred to a bank in the United States or a recipient that must have a Ripple Wallet to receive it.
In a related development, Ripple has partnered with American Express and Santander to using the blockchain technology to speed up cross-border payment in the United States and the United Kingdom. American Express’ customers using the FX international payment platform, FXIP, to make payment will now route their payment through RippleNet.
“The partnership with Santander and Ripple is a positive step in the right direction geared towards enhancing our blockchain journey and maximizing the manner funds are moved around the world,” said Marc Gordon, the spokesperson and Executive Vice President of American Express, in a press statement issued recently.
The blockchain project by American Express will empower users in the United States to instantly connect non-card payments to Santander bank accounts in the United Kingdom.
In a statement by Jose Luis Calderon, the head of Santander’s global banking, “the partnership with Ripple and American Express will open up opportunities in the United Kingdom and the United States regarding movement of funds. Entrepreneurs should key into this development to enhance their business. The blockchain platform will allow all parties involved to track their transactions status as well as the cost.”
The chief executive officer of Ripple, Brad Garlinghouse, in a recent interview granted to pressmen was quoted to have said that Ripple’s blockchain network would enhance the movement of funds by business customers of financial services.
“We have identified the challenges business customers of a financial institution experienced with global payment, which is why we have decided to partner with American Express and Santander to solving the problems inherent in the movement of funds around the world.” Brad Garlinghouse asserted.
The duo of Santander and American Express has asserted that the blockchain project would soon be extended to other parts of the world. However, in recent weeks, some bank executives have raise concern regarding the use of RippleNet for global payment.