Despite a continued bear market and stagnating prices, the crypto market and blockchain technology continues to develop rapidly. Ripple revealed at the Global Islamic Economic Summit 2018 conference that collaborations are growing worldwide. Soon, a bank will use Ripple technologies in every country in the world.
Dilip Rao, Director of Infrastructure Innovation at Ripple, said at the conference that nearly 200 banks and financial institutions worldwide have joined RippleNet, leveraging and piloting the company’s software solutions:
“So far we have received nearly 200 financial institutions around the world, many of them from this part of the world. We now have three banks in Saudi Arabia, two in Kuwait, one in Bahrain, one in Oman, a couple in the United Arab Emirates here. And it’s really our fastest growing market.”
As a result, Ripple will open an office in Dubai at the end of 2018 to increase local presence and provide direct support to all attendees. Rao sees the potential applications of Ripple’s Blockchain technology, especially in areas where the use of traditional payment platforms like Swift would reach its limits:
“In some parts of the world, for example in South Asia, banks have abandoned the use of Swift and developed their own proprietary technologies to intervene in these corridors so they can quickly and inexpensively move money to meet the needs of customers in this high area fulfill volume corridors. In particular, if you want to send this money, you will not realize what the fees charged by the bank at the other end will be. As a result, you may receive significantly less than what you have sent. And if you send money to workers, this can often be a small amount of $ 200, and the fees for these types of small payments can range from 5 to 10%. So it hurts the people who can not afford it the least.”
Ripple is particularly suited, but not limited, to move smaller amounts of money cross-border at low cost and at high speed. Another sector in which Ripple could eventually be used is the machine to machine payment:
“we believe that the key question is quite simple: “How do we transfer even smaller amounts of money? And that can be the foundation for a digital economy. Machine to machine communication make up about 50 billion transactions each year. This is the amount of micro-payments – one-tenth of a cent – and indeed the existing infrastructure can not handle this very low transaction volume of low value. We believe that building new infrastructure is needed to support this kind of digital economy.”
For now, Dao did not specify where Ripple could be used as a payment network between machine. You can see the complete presentation here: