XRP: The Bridge Currency for Quick and Low-Cost Remittances
XRP, known as a “bridge currency,” offers a fast and cost-effective solution for money remittances. SBI Remit, in collaboration with long-term Ripple partner Tranglo Pte. Ltd., has introduced a dynamic approach to process customer remittance requests in real time.
“With its excellent scalability, XRP allows users to easily send money to Ripple’s partners worldwide, giving us a stronger competitive edge in the international remittance business.”
SBI Remit has been utilizing Ripple’s payment solutions since 2017 for international money transfers. In a significant move this year, it became the first international remittance service in Japan to adopt XRP as an intermediary currency between two legal currencies and crypto wallets in the Philippines.
The company plans to expand its range of international remittance services using XRP to bank accounts in the Philippines, Vietnam, and Indonesia, where remittances sent to bank accounts are prevalent.
Why Focus on High-Volume Remittance Destinations in Southeast Asia?
The selection of the Philippines, Vietnam, and Indonesia as target countries is based on their significant proportion of remittances sent to bank accounts. According to a World Bank report, the Philippines received $38 billion and Vietnam received $13 billion in remittance flows in 2022, making them the largest recipients after China.
In April, three Japanese banks onboarded the Ripple-based payment system MoneyTap to leverage its popular blockchain solution for international payments and peer-to-peer remittance.
“Through partnerships with Ripple and other fintech companies, SBI Remit aims to expand remittance services to more countries and enhance services for corporate and inbound transactions,” stated SBI Holdings chairman and CEO Yoshitaka Kitao.
Hot Take: The Power of XRP in Revolutionizing Remittances
The use of XRP as a bridge currency by SBI Remit showcases the transformative potential of cryptocurrencies in remittance services. By leveraging Ripple’s technology, SBI Remit has made international money transfers quicker and more affordable. This move not only benefits individuals looking to send money abroad but also opens up new opportunities for businesses and strengthens the competitiveness of the international remittance market. With the expansion of XRP-enabled remittance services to high-volume destinations in Southeast Asia, the adoption of cryptocurrencies in the remittance industry is poised to accelerate further.
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