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RippleNet has plans to grab the opportunity of growing demand for cross border crypto-based payment
RippleNet’s Policy Director for the Asia Pacific region, Rahul Advani, was recently interviewed with a financial news platform. During the conversation, he talked about the on-demand liquidity service of the Ripple network and the ways it can facilitate cryptocurrencies transfer across countries that will be beneficial for users.
Director about On-Demand Liquidity
Rahul said in the interview that Ripplenet is solving the problem that lies in the existing banking system. He mentioned some major issues like liquidity and huge amounts of capital while pre-funding. The policy director mentioned that Ripple is solving the problem by using its On-Demand Liquidity as a solution for this.
RippleNet users can take advantage of the network’s cryptocurrency XRP that acts between two bridges as a neutral bridge asset. Using this system, the need for pre-funding in transferred accounts will be eliminated, eventually reducing the operational costs and capital overheads.
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Plans for CBDC development in APAC countries
Advani stated that it is seen that Asian Pacific countries are working towards CBDCs development and leading in their implementation across both retail and wholesale space.
Rahul thinks that Central banks will have to face the interoperability challenge when it comes to cross-border payments.
It’s because of the simple fact that every country will create its digital currency. It will create the same isolated currency system that restricts the countries from using each other’s currency, which will happen to their virtual currencies.
So it’s obvious that interoperability is an issue, and hence Ripple Network can facilitate the solution by facilitating cross-border transactions.
For that matter, the network can use its XRP to act as a neutral bridge. XRP is an open-source, decentralized, and public cryptocurrency that can continue to play a role.
So Ripple sees XRP in demand liquidity and the opportunity to work as a neutral bridge among various currencies. And the same goes for Central banks’ digital currencies of countries that can be used as a bridge between them.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
