Mohsen AlZahrani, VP Strategy & Excellence at SAUDI PAYMENTS mentioned that two banks in the UAE will go live using Ripple’s payment solutions. He also confirmed that central banks will not use Ripple’s technology but they, however, will make sure to encourage and educate the commercial about Ripple’s technology.
UAE has been very active when it comes to adopting new and emerging technologies, be it Elon Musk’s brainchild, Hyperloop or blockchain technologies. Mohsen AlZahrani said:
“We are looking into cross-border payments… In the project, we worked with Ripple, we don’t, as a central bank implement any technology [Ripple’s technology]. It’s banks, commercial banks that are implementing the technology. However, choose to start this project, as an approach we used in SAMA called, “Central Bank Led Innovation”, that is how we started innovative initiatives to encourage the banks to use innovative technologies.”
He continued saying that they will always help and encourage the commercial banks to use blockchain and Ripple technologies. He went on to say that they chose Ripple for this project due to Ripple’s focussed use-case. AlZahrani said that considering the massive amounts remittance that goes through UAE, Ripple’s focus on cross-border payments spoke to them.
Furthermore, AlZahrani added that SAMA was leading this project which helped with the training for other banks. He said that the banks were educated, especially on Ripple’s technologies.
Moreover, AlZahrani confirmed that one bank had gone live using Ripple’s xCurrent and that another bank was ready to go live and that it would be announced soon. He also confirmed that two more banks would go live in the first quarter of 2019.
In addition to the above, it was announced recently that Finablr – a UAE-based payment and foreign exchange, went live with Ripple’s technology in partnership with Siam Commercial bank in Thailand. This will help facilitate cross-border payments with the above-mentioned countries.
xCurrent is Ripple’s technology that is rivaling SWIFT and its new invention GPI [Global Payment Innovation]. xCurrent makes use of RippleNet and ILP ledger to merge two different ledgers in two different countries to facilitate a transaction on the blockchain, This transaction method is faster and cheaper and less prone to mistakes than the traditional methods.
A Twitter user @debruyne_n commented:
“So much fomo on ripple, it’s obvious they want control. Look at the major coin holders. It’s crazy people still fall for all this fomonews. I avoid ripple cause it goes against what crypto stands for and it’s not disruptive. I want to be my own middleman”