Ripple (XRP) – An offshoot of the Central Bank of Netherlands, National Forum on the Payment System has cited Ripple has one of the tangible innovations that “can increase the efficiency of the payment system, through greater speed, greater convenience or cost savings.” In a Research tagged “Annex To The Vision On Innovations In The Payment System,” the forum revealed that “the Ripple network protocol is an example of an innovation that could contribute to that change by enabling banks to use this infrastructure to facilitate real-time payments.”
The Netherlands Central Bank, called De Nederlandsche Bank (DNB), touted Ripple blockchain technology as a fast process that takes place every 2-5 seconds, affirming that “Ripple is a good deal faster than Bitcoin and requires less computer capacity”.
“Banks are showing an increasing interest in the Ripple protocol. Integration of the payment protocol would allow banks to offer their customers the ability to transfer any amount of money in any currency to other institutions that use the protocol, without the need for intermediaries. That would lead to cost savings for banks. At present, one German and two American banks are using the Ripple network, while several other banks are experimenting with it.”
“The interest from the banking sector, in particular, in using the Ripple network means its use could grow rapidly in the near future. It is therefore important to monitor this development closely and to be involved in any steps that banks may take.”
The National Forum on the Payment System is a body that seeks to improve the efficiency of the Dutch retail payment system. The forum has as its members to include: Dutch Senior Citizens’ Association, Dutch Payments Association, Dutch Consumers’ Association, Payment System Users’ Platform, Leder(in), an umbrella organization for the physically and/or mentally challenged and the chronically ill, Dutch Association of Hospitality Establishments, Dutch SME association, Dutch Banking Association, Eye Association Netherlands, Dutch retailers’ organization, Internet retailers’ organization, and Association for the Dutch Petroleum Industry.
The forum, which is chaired by DNB gathers twice in a year to discuss how to increase the efficiency of Dutch retail payment system. It is among many other reputable platform recognizing Ripple as a game changer.
Ripple’s Recent Collaborations
Ripple has been collaborating with different banks to achieve efficient cross-border remittance. The platform says in the next 5 years it would have collaborated with over half of world’s top bank. According to Ripple’s CEO, Brad Garlinghouse, the blockchain firm is going to “promote the introduction (of Ripple to banks) and set the goal of over half of the world’s banks to adopt the company’s remittance service over the next five years.”
Before the statement was made, Ripple has collaborated with many firms, liaised with remittance platforms on the use of Ripple tools. Ripple has some standard tools, which analysts say it has the potential to uproot debase banks and become financial solution for this century. While all the collaborations are coming in, Ripple has not increased in value, and nothing tangible has been noticed. However, RippleNet’s partnership continues to increase. Recently, UAE and Saudi Arabia tested Ripple tools for cross border transaction.
The Saudi Arabian Monetary Authority (SAMA) confirmed the move. SAMA’s collaboration with Ripple on the use of xCurrent, a reliable remittance tool attest to the importance of Ripple in the banking industry.
Saudi Arabia is not the first country to do this, the Bank of England’s confirmed its planned relationship with Ripple in 2017. Saudi is joining more than 100 financial institutions who revealed it has collaborated with Ripple in the recent time.
Dilip Rao, the global head of infrastructure innovation at Ripple, says the agreement is going to impact the cryptocurrency and will at the same time save Saudi Arabia of exorbitant cost of transaction.
“Central banks around the world are leaning into blockchain technology in recognition of how it can transform cross-border payments, resulting in lower barriers to trade and commerce for both corporates and consumers,” said Rao.
“SAMA is leading the charge as the first central bank to provide resources to domestic banks that want to enable instant payments using Ripple’s innovative blockchain solution.”
Ripple Plans To Enter China
The CEO of Ripple has revealed there is no going back on coasting China. Despite the fact that China has a stiff policy for blockchain, the country has signaled interest in paying attention to blockchain technology. In a separate development, the Chinese government has revealed that it would be testing blockchain technology this year to the possible opportunities in the area.