Ripple may be far from an uncontroversial company, but one aspect of it is clear: Ripple is achieving a high degree of success with its ambitious plan to be the new SWIFT.
The CEO of a Ripple partner, Mercury FX, Alastair Constance, has been recently interviewed by Decrypt and he talked about using the company’s xRapid system.
According to the interview, the CEO is set to ramp up on the usage of xRapid to settle commercial transactions. The company already has channels flowing money from the United Kingdom to Mexico and to the Philippines and tens of thousands of dollars are being moved per week.
Places like Mexico, Africa and the Philippines are very expensive to send money to and this solution has been helping the company to do it in a faster and more solid way.
xRapid, which uses the XRP tokens, which were created by Ripple, has been growing a lot in recent years as companies like Mercury FX are interested in using it for sending money to “difficult” places easily.
Mercury FX is a company based in London that processes over $1 billion USD yearly via its London office and $1.8 billion USD when you consider all its branches. Now, the CEO has revealed that the company is so hyped and excited about xRapid that they are looking to open up more jurisdictions in which they can use the system.
New channels are set to be opened in Mexico and the Philippines and even more countries may be added in the future. Before xRapid, Mexico was not a big part of the business in the company, but all that changed now that it is so much cheaper and easier to send money there.
According to Constance, Mercury FX is currently working with expatriates from thee countries and with companies that make business with them to offer them interesting solutions for their remittance problems.
Not everything is perfect even with xRapid, though, because there are still challenges that need to be overcome in order to make the transactions smoother.
For instance, there are capital controls that can get in the way, like regulations and taxes on transfers. A country with bad remittance regulations will maybe not be so attractive to the company despite all the costs that can be cut with the help of the technology.
Another important point is that xRapid requires other exchanges in order to change the money first to XRP and then back to fiat again. If the country lacks a good exchange, this may also end up being an issue that the company will have to solve in the long term.
Due to non-disclosure agreements with Ripple, Constance was not able to say anything about how much money is being sent to the two countries, but he affirmed that the operation is very strong at the moment and that it can grow a lot.
“Once the pipe is open, there is no limit to how much one can put through it”, he affirmed during the interview, stating that there is a lot of space for growth now that the obstacles have been removed.
Other markets that the company might pursue in the future are South Africa and Hong Kong. However, there are still several issues to be solved before the company is able to start doing these transactions properly.
xRapid provided a very important service for the company and this is a perfect use case of how you can use the blockchain technology to disrupt the old ways and create something new.