XRP, the native cryptocurrency used by Ripple in its payments network, saw an impressive jump of 13% on Wednesday. The five-week high was triggered after Ripple officially announced that it’s targeting the Filipino-Japan Remittance Corridor.
Ripple is a blockchain-based digital payments network enabling ‘secure, instant and near free global financial transactions.’
Want to track Ripple prices live? Here’s our price ticker.
According to Ripple, Japan has one of the highest remittance costs, twice as much as the average of G-8 countries. And Filipinos in Japan send back home almost $2 billion in remittances every year.
Using Ripple’s On-Demand Liquidity (ODL) service, Japan’s money transfer provider, SBI Remit, partnered with Philippines mobile-payments service Coins.ph and crypto exchange SBI VC Trade to allow remittance payments from Japan to Philippines.
Ripple ensures maximum money reaches the intended recipient without being siphoned off by middlemen. Also Read: Best Ripple Wallet to Store Ripple Cryptocurrency
Ripple’s Resurgence from Downfall
The sixth-largest cryptocurrency by market cap, Ripple, has had a troubled history. The news of Ripple’s surge in prices comes on the heels of a long-standing dispute between Ripple and the U.S. Securities and Exchange Commission (SEC).
Last December, XRP fell by 67% touching a low of $0.21 after the SEC filed a case against Ripple for raising 1.3 billion in unregistered securities. However, during April’s bull run of this year, XRP touched a stunning $1.9 before taking the big hit in May.
Experts strongly believe a settlement can soon be expected. SEC’s regulatory overreach has affected innovation in the fin-tech space and a popular sentiment is mounting in favour of Ripple.
How can Ripple Transform India’s Remittance Scene?
India is the world’s no.1 recipient of remittances contributing to nearly 3% of its GDP. Even amid the raging pandemic and global economic meltdown, India received more than $83 billion in remittances during 2020.
According to a report run by Ikigai Law, India can save 60% of the costs involved in transferring remittances, i.e. nearly 18,000 crores as of 2018, by eliminating financial intermediaries. And Ripple can help solve this problem.
‘ODL in Japan is just the start, and we are looking forward to providing real-time payments to other regions as well’, noted Ripple in its blog post. Also, Ripple recently acquired a 40% stake in Tranglo, a Southeast Asia-based cross-border payments specialist, to enhance the remittances ecosystem in Asia.
Want to buy XRP directly in India? Do it easily on CoinSwitch.
P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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