Ripple CEO, Brad Garlinghouse recently took to Twitter and has highlighted XRP’s utility in settling cross border payments. He further went on to give the example of MoneyGram which is experiencing real-time settlement (~60 seconds) in USD to Mexican pesos.
Ripple MoneyGram Synergy To Revolutionize Cross-Border Payments
For the purpose of cross-border payments, Ripple offers two main products: xCurrent and xRapid. While the users are all praises for the same owing to its high speed, the question- why XRP – continues to prevail. The reason for the same is that payments are cheaper and get settled faster with XRP than Fiat/Fiat exchange pairs. Interestingly, Brad Garlinhouse’s tweet takes a dig at naysayers and clearly explains the use of XRP.
In June 2019, Ripple bought a share issue from MoneyGram worth $30 million at $4.10 per share to acquire 8-10% of the company. Ripple thus became the critical service provider for cross-border payments and foreign exchange settlement using digital assets. Previously, MoneyGram had to use banking services to provide settlements for payments they initiated. Furthermore, in order to make up for the difference in time of settling payments, MoneyGram had to take loans to increase the required liquidity.
Crypto Twitter Supports Ripple
Crypto Twitter expressed their enthusiasm at the tweet and went on to laud Ripple’s efforts. A twitter user, Jane, who works in a Canadian bank suggested a customer send money to Mexico using MoneyGram. She further wrote it was cheaper, faster and had a faster settlement.
Another crypto user, Stephen Donelly said that Ripple was way ahead of the curve and has strategic planning in place for implementing long-term growth.