According to Ripple, xRapid will act as a “bridge” between currencies and will enable faster cross-border transactions for payment providers and banks by using the XRP cryptocurrency. For instance, a bank wants to process a transaction from U.S. dollars to Indian rupees. With the product, U.S. dollars will be converted into XRP tokens, then moved overseas and converting it back into Indian rupees at the other end, speeding up the process.
Sarbhai informs that currently more than 120 banks and financial institutions have partnered with Ripple and using its blockchain-based product xCurrent. This particular product is used by banks to settle international transactions. Based on distributed ledger technology xCurrent is used by banks to message one another, confirming each stage of a cross-border payment in real-time.
Earlier this year, Ripple Chief Executive Brad Garlinghouse pronounced that xRapid will be employed by “dozens” of banks using by the end of 2019.
Though authorities have been cautious over cryptocurrencies, it backing technology, the blockchain often catch their interest. Their aversion to digital assets can be attributed to its volatility and its plausible use for illicit practices like money laundering, or to defraud investors. Cryptocurrencies including XRP rocketed up to unprecedented levels late last year and have rolled back significantly this year.
Sarbhai stated that as the regulators are starting to see the benefits of blockchain and cryptocurrency technology, their outlook towards it has been improving. He said
“A couple of years ago the narrative was: blockchain good, crypto bad. What we’re now seeing is more and more regulators, policymakers taking the whole space in one conjunction. So, I think that narrative thankfully is now changing because policymakers, regulators are seeing that there is a strong benefit that digital assets, cryptocurrencies bring in.”
Ripple’s CTO Claims XRP Is More Decentralized Than BTC And ETH Networks