UAE Exchange Plans To Implement RippleNet For Remittances

[PRIBO247]

Recently, Ripple has gained another banking partner.
And this time, its a huge & impressive name – UAE
Exchange. As you probably know, UAE is one of the
countries that accepts fintech. They recently declared
that Cryptocurrencies will be viewed legally as
securities. Now, they want to implement RippleNet to
launch cross-border remittances to Asia. This will
probably be done in Q1 2019, as UAE Exchange’s CEO
stated in an interview for Reuters:

"We expect to go live with Ripple by Q1, 2019
with one or two Asian banks. This is for
remittances to start with, from across the globe
into Asia.”

There were no banks mentioned, but those banks
would probably be located in India – the largest
receiver of Remittances internationally. The UAE
Exchange CEO, Bavaguthu Raghuram Shetty, have
connections with India. Another factor that made us
think it would be India is the amount of Indian
migrants that are working in UAE.
The majority of the funds are now sent via foreign
exchange branches. But now, different apps appeared
to ease the money transactions internationally. UAE
Exchange and Ripple hopes to capture this market and
reduce the costs by using blockchain based services.

Zerocrypted Opinion
This is more than necessary for Asian countries.
According to World Bank Prices Worldwide Database
(WBPWD), the cost of sending a remittance to a tier
three or tier two country can be as high as 7.1%.
Ripple can significantly reduce the cost, increase the
speed and offer a state of the art security of the funds.
Right now the most remittances happen through
Western Union, Ria Money Transfer, MoneyGram and
UAE Exchange. The other part of the market is
fragmented into smaller players that are trying to
survive with the increasing regulatory cost and
compliance requirements. Moreover, even World Bank
sees blockchain as a solution to the current problems:

“In the near to medium term, the technology [of
blockchain] may be applied to reduce
infrastructure costs… for cross-border payments
and regulatory compliance… Smart contracts in
the blockchain can help create a streamlined
payment system by eliminating physical
documentation and automating contract
execution. This has the potential to significantly
reduce remittance costs.”

Even though the cryptocurrency that is moving the
most remittances right now is the Bitcoin, due to being
the oldest and the one with the highest liquidity in the
market, Ripple is coming strong from behind. The
company would probably not be able to move as
many dollars as Bitcoin is moving now, but its service
could ease the banks transfers and automate those.
UAE Exchange working together with Ripple is another
step forward into changing the ugly parts from the
financial system. Ripple could reduce the 7.1% fee to
a 0.1- 1% fee which will offer a lot of benefits to the
workers as well as to the economy.
With Ripple being one of the best options for cross-
border payments, partnerships like this could lead to
more and more financial institutions into working with
Ripple – until RippleNet would be the most use
blockchain in the financial sector.

Source : https://zerocrypted.com/