XRP Advances to international Payments Adoption

XRP Advances to international Payments Adoption

A large portion of discussions held around Crypto Currency and excitement from the sector relates to their ability to undertake instant cross boarder payment settlements. In the matter of seconds funds can be shifted from one place on the globe to another. The reason why this is important is due to the ability cross boarder payments with instant settlement can have on business and more importantly supply chains.

We're all familiar with the phase time is money and when it comes to dealing across international boarders delays in settlement limits everything. Quite often there will be a notification that payment has been made but there is a clearing period as funds are slowly transferred from one bank through a barrage of checks and balances.

This is because the current fiat system is not trusted and due to the complex nature of the old system between the point of sale and receiving funds, anything can happen so suppliers and manufacturers while they confirm payment, won't commence until funds are in their account.

This creates what is known as lead times, although some industries already have lead times which are expected, the fiat transfer can add additional time delays. The implementation of an instant payment system means businesses will have a faster more consistent method of receiving funds and no middle men so less risk for their companies and can commit to more production.

Are CBDCs On Their Way Out?

An interesting turn of events but not completely unseen is the fact that a number of people are in belief that Central Bank Digital Currencies (CBDCs) will lead the adoption of cross boarder payments. It makes sense that a pegged digital currency would exist and lead this space.

But as the sector begins to take form things are looking a little different. Many reports have indicated the cost of CBDCs out weight their development and function and that is even before we look at the risk associated with them. As such many banks while researching are hesitant in developing their own rather wishing the private sector to take the lead.

Although there is probably a place for CBDCs, a one coin to rule them all approach probably won't fit the market. There is reason to believe that there may need to be CBDCs developed by banks and maintained but this could be done as a separate on chain token that a Bank or Government can back and maintain issuance.

Ripple Adoption

Recent news is circulating that Ripple (XRP) looks set to take prime position for becoming an international payment settlement system. This will fit the narrative that the private sector should take over. XRP has been in operation for quite some time and despite it's court cases it doesn't appear to be hindering the companies overall advancements.

Even if the company is fined, there is no indication that it will be shut down and cease operations nor does their seem to be appetite for regulators and courts to do so. So XRP could be on a smooth sailing position from here on in.

All Publicity is Good Publicity

As the saying goes all publicity is good publicity in relation to XRP this could not be more truer with the company advancing their operations across many other nations. The latest has seen The Kotak Mahindra a Bank in India accept Ripple as it's international remittance system.

When you consider the large amount of Indian Nationals working across the globe as well as studying. Indian has a large issue with multiple different international currencies being sent to it from overseas family members working.

The shift to a single currency such as XRP will greatly reduce the overheads and time delays in having to deal with so many fiat exchanges and the fees involved in swapping fiat currencies. The swift transfer of XRP from anywhere across the globe to India and processing for their native currency is far easier to manage and track the wealth growth of individual families.

Indian banks also provide loans to Indian nationals residing overseas which is often utilised to purchase property or operate businesses. Implementing Ripple means that someone could take out a loan and have the funds available to them on the other side of the globe with no time delay. Increasing the amount of business that can be undertaken.

A fantastic step in the right direction in the adoption of Crypto. So perhaps CBDCs are no more and XRP will take the lead.

image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.