Ripple: Adaptation of XRP in banks due to regulation uncertain

Although Ripple’s payment solutions are already being tested by a number of heavyweights in the financial industry, there are still major barriers to their wider adoption. The continuing regulatory uncertainty in many countries continues to be a thorn in the company’s side.

Banks continue to hesitate to use software solutions provided by Ripple for cross-border payments, e.g. xCurrent or xRapid, or other crypto currencies, as regulatory uncertainty remains a major issue. Ripples bank director, Marjan Delatinne, explains at the Euro Finance Techn conference that non-bank financial institutions and payment providers use block-chain technology much earlier than the banks themselves due to the lack of regulation worldwide (freely translated):

To be clear, no banking institution uses this, because as you have probably heard, the regulatory framework for the use of digital assets by banks is not very clear. However, payment service providers and some other financial institutions are less subject to these obligations.

xRapid is, in his opinion, a good way to save cash and provide his customers with an asset transport medium exactly when they really need it. A person sends a payment from the United States to Mexico, and the process could be as follows (freely translated):

I imagine you are in the USA. You have $100 and want to send it to a user or person in Mexico. So you go to Crypto Exchange, you exchange $100 for XRP. And immediately after the XRP is converted back into Mexican pesos, it will be delivered either to the local financial institution or to the financial institution that has an account at the Crypto Exchange.

This actually changes the way the current liquidity is managed. So you only use the liquidity when you need it. And if you don’t need it, don’t use it… So I think this product is the ultimate way crypto assets or digital assets can help build the global economy.

Ripple released xRapid for commercial use in October. To date, Ripple has confirmed that three payment providers will test xRapid, including MercuryFX, Cualix and Catalyst Corporate Federal Credit Union.