UAE: A remittance firm, UAE Exchange, based in Abu Dhabi is the latest firm to accept the RippleNet blockchain network. The business formed a new partnership with distributed ledger startup Ripple so as to process real-time payment solutions for its customers.
According to the company, it will use the RippleNet blockchain network for cross-border transactions, purposely for the reduction of cost and frictions associated with cross-border transactions. The company which operates nearly 800 branch locations in 31 nations had already stated last year that it was eyeing a deal to use Ripple’s technology. In a statement, the UAE Exchange said it was eyeing to utilize the technology in order to boost its competitive edge in the market for remittances. According to Promoth Manghat, UAE Exchange’s chief executive:
“The early adoption of this game-changing technology allows us to offer a competitive service, as it will have an impact on the speed and cost of cross-border transactions.”
Manghat further said:
“The [current] process is a very long process… an archaic process… where it takes almost 24 hours during the week and it can go to 72 hours during the weekend, Blockchain has the potential… to come closer to the reality to achieve an instant payment system.”
Though, Promoth added that “cost-wise [the deal] isn’t going to make a substantial difference”.
According to him, the reason for this is due to the high level of domestic competition, stating that the UAE money transfers market already “ranks as one of the cheapest places for remitting money”.
Promoth said that:
“New technology brings efficiencies and efficiencies help us to scale the type of activity we’re doing.”
However, the UAE Remittance Firm will not use Ripple’s XRP token as part of its use but would rather use Ripple’s broader technology platform for executing those transactions.
This makes the UAE Exchange the latest firm to sign on with Ripple, which announced partnership with firms such as Mercury FX, IDT Corporation, Santander UK, LianLian, and MoneyGram in recent days.
MoneyGram, Mercury FX and IDT Corporation are both trialing Ripple’s xRapid product which makes use of the company’s XRP token, Santander UK is utilizing xCurrent another Ripple product, while LianLian is also using RippleNet.
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