A new payment service based on Ripple’s Blockchain technology is to be developed between Japan and Brazil. It will be offered by the two large banks MUFG Bank (Japan) and Banco Bradesco (Brazil). The two banks would like to enable “fast, transparent and traceable” payments between Japan and Brazil.
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Ripple developed the system to enable international transactions between banks. The crypto company has been working intensively on the development of immediate international payments for some time now, which eliminate the need for complicated and expensive foreign transactions between banks. The currency exchange required for such transactions is equally expensive for banks and customers. By using XRP, Ripple wants to avoid the high costs and time that can often take many days.
Confirmed, but not yet completed
It is still unclear when the payment system will be completed, which was officially announced on 9 November. So far there seems to be little more than a letter of intent with which the two partners would like to clarify their plans and present their idea to the public. But when the time comes and the new service is functional, this could not only increase Ripple’s reputation, but also boost the entire crypto world.
Ripple already works with a number of large banks
Ripple has made repeated efforts in the past to enter into partnerships with banks. In the autumn of this year, for example, it became known that the possibilities offered by Ripple had so far been tested by 12 banks worldwide. Major banks such as Banco Santander, Spain’s largest bank, have decided to partner with Ripple. MUFG Bank, a member of Mitsubishi UFJ Financial Group, is known as a strong supporter of Ripple. Mitsubishi UFJ Financial Group has even recently announced that the bank wants to release its own crypto currency – the MUFG Coin. It is therefore not surprising that the Bank has decided to take this step.
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Partnership between two big banks
For the two banks, this is not the first time that cooperation has taken place. They have already entered into other partnerships together in the past. The cooperation with Ripple is the extension of an already existing agreement between MUFG Bank and Bradesco dated September 2017, according to the official letter of intent of the two banks.
What does that mean for the course of Ripple?
Banco Bradesco is one of the largest banks in Brazil and was at one time the largest private bank in Brazil. So the partnership is a huge step for Ripple and could drive the Ripple price up and provide greater long-term stability.
Is now the time to buy XRP? The message could actually lead to a surge in the crypto currency, although of course nothing can be predicted with certainty when it comes to the crypto market. The market capitalisation of XRP was 16.8 Euro on 16 November and increased by 4.36 % in 24 hours. The letter of intent of the two banks shows their determination, although the outcome of the project remains to be seen. They would join a number of renowned partners: Ripple’s “growing global network” also includes Crédit Agricole, American Express, Money Gram and SEB.