Dubai-based bank RAKBANK and BDO Unibank, a full-service universal bank in the Philippines, will use the payment ecosystem of Ripple to accelerate remittances to the Philippines.
RAKBANK joined BDO to extend its activity in the region. The institution located in Dubai already has operations in the country and is part of the RippleNet ecosystem.
Providing Fast, Secure, Friction-Free And Low-Cost Payments
The Bank aims to extend fast, secure, friction-free and low-cost payments to any bank account in the Philippines through the RakMoneyTransfer (RMT) service. Gaining access to a local bank also solves the last-mile money transfers problem.
“We, at RAKBANK, are committed to increasing our international remittance footprint and are delighted to enhance our RMT services into the Philippines, thanks to our partnership with BDO. This partnership aims to offer the Filipino expat community here in the UAE the ability to safely and instantly remit money back home at competitive rates with zero back-end charges and no hidden fees,” said Peter England, CEO of RAKBANK.
BDO Bank also joined RippleNet, and it has reportedly been linked to larger and more influential partners worldwide by joining the Ripple club. The partnership has now extended the possibilities of the ex-pat community in the UAE to the Philippines for international remittances.
RippleNet is already serving as a growing network of banks and financial institutions including MoneyGram and other local money transfer firms. For now, RippleNet’s use can be achieved without the XRP asset being needed. The network has shown its capacity to compete with other interbank networks, such as SWIFT, in this respect.
However, RippleNet’s potential use didn’t generate significant demand for XRP. After failing to break the $0.30 barrier, the asset has floated around $0.23. Extreme XRP predictions assume a use case in which banks use the asset for remittances and transfers, increasing their price.
For now, XRP has only managed to achieve speculative trading, with volumes picking up by early 2020 to double their usual level. XRP is still seen as a bid for potentially significant future appreciation.