The trend of using crypto currencies has been on the rise since 2017. At that time, Bitcoin became a hot trend in the market. XRP is also another virtual currency based on Ripple platform introduced in the year 2012. People using it, are of the opinion that it is an alternative to SWIFT technology, which was used by banks for international money transfer. But XRP is much cheaper than SWIFT and the settlement time are fast and on the same day. The popularity of XRP is going up at such a faster rate that in 2019, it was the second most used crypto currency after Bitcoin in the world.
Now the question that is going the rounds is that are banks open to use XRP for their overseas settlement purpose. If anybody wants to make any payment in the emerging market, the process needs involvement of multiple traders of currency plus there has to be local currency accounts which are pre-funded. With the help of XRP, these payments can be done without the involvement of any intermediaries.
Initially many banks and money transfer companies were reluctant to accept XRP and Ripple platform. But now slowly, the picture is changing. At present around 4 banks have accepted XRP and around 70 to 75 money transfer companies are also widely using this technology for money transfer in the international market. Some of these include Moneygram, Cuallix, SBI Securities and IDT. There are many more in the list which include Euro Exim Bank, SendFriend, InstaRem and more. With their operations of only four years, market cap if XRP now stands at $1 B.
An unbiased Neuer capital review feels that the entire process is at an experimental level in many banks. Sources close to the banks have confirmed that technical department of different banks are carrying on the experiment for last few months. In most cases, the bank management is finding it quite satisfactory, but they are not certain when they will start implementing the process of XRP in their system. They are also of the opinion that the cost of transferring other assets through XRP is much cheaper and at the same time, faster than the SWIFT mode.
Another barrier in the implementation of XRP is that in many countries the banking regulations are not much favourable. Of late, European Union has passed some regulations on the use of crypto currency in banking system. Government is worried about the money laundering of the money transfer companies using XRP. Once those things are streamlined, the Governments may make the laws easier to pass and it will also be easy for the banks to implement XRP on a larger scale. During the last few years, the concept is changing and the crypto currencies are getting more accepted on a larger scale. Hence trading in crypto currencies is also increasing and the volume has increased by many times. With the fast changing scenario and the rising cost in banking, time is not far away when the XRP coin will be used in all major banks of the world.