Ripple: The Secure, Low-Cost Solution for Cross-Border Payments
If you are on social media or have access to the internet, you would have heard of the world cryptocurrency, blockchain, wallets, bitcoins, ETH, etc. These are a few common words, amongst many others, that have grabbed the financial sector by its horns and are influencing the world of investment and stocks. Every newbie is now eager to dive headfirst into this pool due to the appealing nature of the market. People are reporting high gains in a short amount of time and who would not want to maximize their earnings in such a manner?
A quick introduction to crypto
Cryptocurrency was the most searched word on google in 2020 – that’s how popular it became in a mere span of months. Cryptos are digital currencies that run on online ledgers all across the globe. These currencies are not under the authority of any governing body which accounts for their decentralized nature. There are more than 7000 cryptocurrencies available in the market in 2021 with some more popular than others. Currently, Bitcoin and Ethereum hold more than 50% of the market cap together and are the most sought-after ones.
What is Ripple?
The official cryptocurrency XRP or Ripple, is a crypto and a blockchain that enables fast and secure transactions in the world in different countries. Having its own blockchain gives this currency several advantages in trading globally as users can use the safe platform to deal in XRP at any point in time. A ripple cryptocurrency buy is also advantageous in itself as it is gaining momentum in the global market gradually. A factor that most people would need to consider before making this purchase would be the value of XRP in their own denomination. Websites and platforms like CoinSwitch make it easy for users sitting anywhere in the world to make their trades with the best process.
Trading through Ripple
With an advanced blockchain technology for payments, many financial institutions are finding it easier to expand into different markets anywhere in the world. This can be done through XRP wallets available online. Several platforms allow trading in Ripple and registering on those platforms would make it easier to buy and sell this particular cryptocurrency. The first step would be to find a platform/wallet that is the best fit for your needs.
Next, register by completing KYC verification and providing other relevant details like ID proof and bank information. Begin trading after research and an understanding of the risk assessment. When trading from India, convert INR to Ripple to calculate the costs and make the purchases and sales according to the current value of XRP against the rupee.
Cross border payments
The mission, as stated by Ripple, was to remove any friction in global payments and enable financial transactions to happen smoothly, just like the transfer of information, digitally and instantly. This is the reason why they work closely with banks and other payment providers to modernize the payments using blockchain and digital assets.
- Ripple has created a platform called On Liquidity Demand that utilizes XRP to send funds into accounts instantaneously.
- XRP is useful in making global payments in a fast and efficient manner which is also not as expensive.
- It uses the ISO 20022 standards and rules the settlement period regarding cross-border payments comes down from three days to merely three seconds.
- Institutions like the Chicago Mercantile Exchange have expressed an interest in the currency.
- The technology used by Ripple is deemed as more superior to SWIFT (the pre-existing technology used to make cross-border payments)
- A few countries like Japan and the Philippines have accepted the use of XRP as a platform for money transfers, all that is left now is to get the ball rolling.
The time is now
The industry for cross-border payments is at an inflection point in today’s day and age. For millions of businessmen all across the world, big or small, their daily life and livelihood are affected by the speed and cost of transfers. Time delays and friction-filled payments can create a huge impact on the economy of the whole and the people as well.
Complex cross-border systems of payment can cause a huge derailment during emergencies as well. Banks and institutions are now taking charge of this system and are attempting to smoothen it out. It is obvious that there is an increasing demand especially among businessmen, traders, and other huge global entities to have a system for worldwide transactions that is faster and smoother.
Cryptos and the new technology do provide an effective solution to higher costs while making such trades however, the idea has not reached its initiation. To make faster cross-border transactions happen, several loopholes would have to be filled, and the developers at RippleNet are striving to make that happen. It is not long before the world would see crypto domination as a currency and trading option.
