For a considerable time now, banks and top financial institutions have embraced the used of Ripple products. Unfortunately, they have been steering clear of the XRP token. But not for long. Ripple has indicated that commercial use of XRP will be launched in the next month or so.
This will be achieved by fully activating Ripple’s xRapid which is a blockchain based cross-border money transfer service that will employ the use of the XRP token.
This was expressed by Sagar Sarbhai who is the head of regulatory relations for the Middle East and the Asia-Pacific at Ripple. He expressed his confidence on the XRP use saying that he is “very confident that in the next one month or so you will see some good news coming in where we launch the product [xRapid] live in production.”
When xRapid comes into play, a bank which wants to initiate a speedy cross-border transaction will need to have a ‘pre-funded local currency account.’ The local currency will be exchanged for XRP tokens. On reaching their destination, the XRP tokens will be reverted back to fiat only now to the other country’s currency.
This will move xRapid from being used just ‘for trial runs’ to a fully-fledged, almost instant, cross-border money transfer solution for banks and other financial institutions.
In the past, Ripple has seen tremendous adoption it xCurrent product which, although it uses the distributed ledger technology, it does not invoke the use of the XRP coin. Currently, more than 100 financial institutions all over the world have embraced the use of xCurrent.
While appearing on CNBC, Sagar also noted that financial regulators are shifting the view of digital currencies and are now slowly having a positive attitude. He attributed the change of heart to “a strong benefit that digital assets, cryptocurrencies bring in.”
With Sarbhai excited that commercial use of XRP will be launched “in the next month or so, do you think the move will encourage a price appreciation on the XRP token?
Let us know your thoughts in the comments section below.