Demand For Ripple Inc Solutions Simply Too High in Asia-Pacific
Ripple Inc is changing the
cross-border remittance space with its technologies that allow transactions to
be faster and cheaper benefiting the end user. Presently, because of what’s on
the table, the demand for Ripple Inc and similar solutions is apparently on the
rise in the Asia-Pacific (APAC) region.
Cross-Border Demand Too Big In APAC
In a post by Ripple Inc’s official
Twitter handle, the cryptocurrency company revealed that there is an increasing
demand for its remittance solutions. However, the existing services cannot
cover this ultra high demand.
Ripple Inc tweeted saying “Demand in APAC
for fast, affordable cross-border remittances are growing, but existing
services can’t keep up.” This statement was made at the Ripple Inc Regional
event in Bangkok.
Malaysian Bank, CIMB previously
partnered with Western Union to help their customer send money to their
families in other parts of the world. However, Thomas Kiong, Senior Managing
Director of Group Treasury Sales and FX at the bank admitted that the economics
of the partnership favored Western Union more. He revealed that the bank did 80
percent of the work but only got 20 percent of the reward.
Clearly, the remittance services
offered by traditional financial institutions are expensive to the customers.
This is even more costly for those with low-income jobs. Asides the cost, the transaction time
are also long.
Paul Arriyavat, VP of Disruptive
Technology Office and Chief Strategy Officer at Siam Commercial Bank (SCB)
revealed that despite the challenges, banks in the region are now working on
Ripple Inc Demand Is Increasing In APAC
It is clear that banks in the Asia Pacific are turning to solutions that are faster, cheaper, and easier. Ripple Inc solutions have gained adoption in the region following restrictions from western union. Arriyvat pointed out that blockchain technology has become the core platform for solving their remittance struggles. He revealed that the bank assist Thai migrant workers living in Japan send money home through 30,000 ATMs.
CIMB on their part dumped Western Union instead launching SpendSend. Their cross-border payment service is now present in 31 countries. The bank is targeting higher value transactions from some customers. To achieve that, CIMB had to plug into the networks of existing blockchains and expand their reach while reducing the cost for customers.
WrathofKahneman tweeted about the
situation saying “The latest Ripple Inc
Insight has some interesting videos from heads of CIMB & SCB. Two nuggets: -WU wouldn’t let CIMB in
Malaysia-Indonesia corridor, so they dumped them. -SCB couldn’t expand to
Vietnam & Cambodia w/o Ripple Inc’s multi-hop.”
The Ripple (XRP) community is excited about this latest development as they believe that Ripple Inc technologies will help the banks boost their cross-border transaction services.
Ripple Inc is also impacting other
cryptocurrency companies. BitFi, a cryptocurrency wallet recently
praised Ripple Inc for its technical achievements. The company said, “Welcome to the big
show Ripple Inc, we applaud your technical triumphs & look forward to
securing XRP. As Bitcoin paved the way for all tokens & remains granddaddy
of currency, Ripple Inc developed an incredibly stable & secure network for
banking. Two True Masters, zero competition.”
While BitFi has not added support for
XRP, the exchange claims that it is looking forward to it. The cross-border
payment industry is apparently worth billions of dollars annually. Transactions
are usually slow and costly for the customers, and the entry of Ripple Inc into
this sector is solving those challenges.