Importance of XRP in Cross-Border Remittances
If you’re interested in cryptocurrency, you might have heard about the significance of XRP in transforming cross-border remittance processes. Panos Mekras, a well-known blockchain consultant and financial technology expert, recently emphasized this point. His commentary was sparked by an article from Rippleβs partner Tranglo, which aimed to correct common misunderstandings about remittances and cross-border settlements.
Misconceptions About Remittances
In their article, Tranglo tackled the misconception that banks are the most cost-effective option for international money transfers. However, according to a March 2023 report from the World Bank, banks are actually the most expensive choice, with online remittances via banks averaging a 12.1% fee per transaction. Trangloβs internal research supported these findings, showing that traditional banks and payment gateways typically charge between 3% to 7% in transaction fees. In contrast, Trangloβs users experience an average fee of less than 0.5% for cross-border remittances.
XRP-Powered Low Fees
Mekras highlighted the role of XRP and blockchain technology in enabling these low transaction fees. He advocated for the adoption of XRP-powered low fees as the benchmark for international settlements and remittances.
Ripple’s Investment in Tranglo
On 29 March 2021, Ripple announced that it had invested in Tranglo, a Southeast Asian firm specializing in cross-border payments. This strategic investment marked a key expansion of RippleNetβs On-Demand Liquidity (ODL) service. The company disclosed through a blog post that it had finalized a deal to acquire a 40% stake in Tranglo.
Enhancing Cross-Border Transactions
Jacky Lee, the CEO of Tranglo, expressed the companyβs commitment to enhancing cross-border transactions and stated that their collaboration with Ripple marks a significant milestone in their goal to improve global financial services.
RippleNet’s Expansion in Southeast Asia
Asheesh Birla, the General Manager of RippleNet at Ripple, also commented on the partnership and emphasized Trangloβs strong payment infrastructure and customer service as important factors in supporting Rippleβs expansion in Southeast Asia.
Hot Take: The Future of Cross-Border Remittances
The partnership between Ripple and Tranglo is poised to revolutionize cross-border transactions using blockchain technology and digital assets. With XRP-powered low fees as the benchmark for international settlements and remittances, this collaboration has the potential to transform cross-border remittance processes across Southeast Asia and beyond.
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