Both Stellar Lumens and Ripple have set out to revolutionize international cross-border payments. The company Tempo prefers the Stellar Lumens network over Ripple. For the first time, the CTO of Tempo did explain this upcoming goals and developments.
Tempo International is operating in over 100 countries with more than 100,000 locations worldwide, did choose the Stellar Lumens network.
While Ripple’s software solutions offer similar functionality, Tempo’s CTO, Anthony Barker, said in a recent podcast that the company philosophy of Stellar is much closer to Tempo than that of Ripple. Furthermore, the use of the Stellar network for Tempo is a “natural complement”:
“Stellar was a natural fit for us … My reaction was that [ripple] is not so good for community building … [It’s] much more like Visa or Mastercard … I firmly believe that open systems will win in the long term.”
For further development, Tempo will use Stellar Lumens’ (DEX) decentralized exchange. DEX uses the native XLM token to process hundreds of thousands of transactions at very low prices (1 cent on 600,000 Stellar Lumens transactions). With this cooperation, Tempo intends to build up a fast and reliable infrastructure in a timely manner, which makes all payment solutions operational at the institutional level:
“We’ve worked with Jed McCaleb and his developers, and we’ve introduced compliance so that it’s integrated into Stellar as the second-tier default protocol … so we know how to pass first name, surname, and date of birth. They added that really fast, just because they really focus on this global referral use case. “
Barker further claims that the benefits of cryptocurrency outweigh the benefits of traditional referral services. It does not matter if 1 dollar or 1 billion is being transferred: The transaction costs remain equally low. As we reported, some days ago billions of XRPs were moved for less than a cent.
He describes that precisely because of this fact, they are over-enlisted to use blockchain technology:
“If you go to someone like Western Union, they have some money in the other country and they pay a withdrawal from their account in that country to make it faster. So you have this problem of using money with the SWIFT billing system and it’s really expensive, awkward and slow … That’s why we migrated to Blockchain … It’s really expensive, it’s a nightmare [with correspondent banks]; Money is locked up and there is no information about where it is or where it was blocked. “
Barker, like many others, did recognize the potential of blockchain and is taking advantage of it to expand his business. We agree with Barker that it’s outdated to pay double-digit fees for a multi-hundred-dollar transfer, just so that the money arrives on the recipient’s account either immediately or in a timely manner.
Cryptocurrencies have come to stay.