The World Bank Has Praised Ripple’s financial transaction service xRapid in a recent report. The report basically confirms what protagonists of Ripple or Stellar have been saying for years. The current system for cross border payments is highly ineffective as different banks with different systems have to work together. Different business times in different time zones further effect the speed of transactions. In addition to that, the service is often not very cost-effective.
The report suggests that DLT (distributed ledger technology) could possibly “hav[e] the potential to drive industry-wide change”. The world bank cites Ripple’s product xRapid as a good example:
“In 2018, Ripple, a FinTech company, piloted xRapid, a DLT-based cross-border payments solution, along the very competitive U.S.-Mexico corridor. Financial institutions involved in the pilot saved 40%-70% in foreign exchange costs, and the average payment times was just over two minutes. The transfer of funds on xRapid took two to three seconds, with most of the processing time explained by domestic payment rails and intermediary digital asset exchanges.”
The blog also mentions attempts to integrate DLT into the existing financial system. Examples are SWIFT, Visa and JP Morgan. The report also mentions JPM Coin.