Ripple's partnership with MoneyGram comes at a time when rumors of a cryptocurrency ban in South Korea have left the crypto market rattled. As Ripple's technology is based on the blockchain, the payments flow is completely transparent and the fees are lower.
Skeptics have suggested XRP is unnecessary to carry out transactions but according to MIT Technology Review, "Ripple's big bet is that XRP will become a "bridge currency" that many financial institutions use to settle cross-border payments faster and more cheaply than they do now using global payment networks, which can be slow and involve multiple middlemen".
Blockchain company Ripple announced on Thursday that it had finalised an agreement with Texan funds transfer giant MoneyGram that would see Ripple's digital currency XRP, which had soared in value since the beginning of December despite questions regarding its practical uses, be used to provide liquidity to financial institutions.
Through the partnership, MoneyGram will pilot XRP payments through "xRapid", a new Ripple solution for "on-demand liquidity", the company said in a press release. "Similarly, the average transaction time for XRP is 2-3 seconds with other top digital assets ranging from 15 minutes to an hour", the companies said in a statement.
The money transfer company clearly sees a lot of value in XRP...
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MoneyGram's CEO Alex Holmes said that his company was "looking forward to piloting xRapid".
Ripple, whose price slipped by nearly 50% since the start of this week is finally back on an upward momentum as this news has given investors every reason to cheer.
Ripple is up 10% today as of 10:45am ET, trading at $2.16 according to data from CoinMarketCap.
Several firms have landed a boost to their share price as a result of cryptocurrencies and blockchain technology. Moreover, in November 2017, the blockchain payments startup teamed up with Santander and American in order to speed up cross-border payments between USA and United Kingdom.More news: An Early….and Tough….Flu Season in Beatrice Area
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