Ripple Could Disrupt International Payments Industry – Analyst

Barbara Gonzalez Briseno

Mike McGlone, senior commodity strategist at Bloomberg, said Ripple can cause disruption in the cross-border payment industry.

He added that Ripple could also challenge other major techs in the payment sector, but its exposure to the XRP cryptocurrency might serve as barriers.

In his recent Crypto Outlook report, McGlone said:

“Ripple Labs’ 2019 partnership with MoneyGram suggests markets still see the potential for disruption in cross-border payments, yet Ripple’s exposure to its own cryptocurrency threatens its enterprise software venture. The project’s investors, including Mastercard, Visa, Capital One, Citigroup, and Bank of America, are likely just hedging.

“Governance, scalability, standardization, and security concerns provide a healthy moat around the existing infrastructure, such as Swift. If nonbanks could access central bank money directly, it could create unintended consequences for the Fed and disintermediate commercial banks’ role as credit creators and maturity transformation machines,” he added.

55.8M XRP transferred

Almost 55.8 million XRP were transferred, of which around 8 million XRP were reportedly sent between Ripple anonymous wallets, according to the XRPL Monitors account.

A total of 42 million XRP were transferred between XRP wallets held by Bithumb, while the other 5.8 million XRP were sent from UpBit to Bittrex.

Ripple: Rising XRP liquidity lures strong institutions

VP Breanne Madigan earlier said institutional traders are adding more liquidity to Ripple’s XRP-powered payment app ODL.

She added that XRP liquidity is ODL’s lifeblood as it decreases the risk and cost of each cross-border payment transaction.

“The continued growth of ODL has led to an expanding number of financial institutions, payment providers and market-makers to trade in XRP. The resulting increase in institutional trading volume has helped to bring further liquidity to XRP, specifically in ODL corridors – in spite of the recent market turbulence surrounding the COVID pandemic.”

By using the product, Mexico’s largest crypto exchange Bitso has expended its business, raising its XRP / peso volume significantly.

The company is currently handling 2.5 percent of remittance transactions from the US to Mexico, which is considered a breakthrough attributed to the company’s partnership with Ripple.

Barbara Gonzalez Briseno, head of finance at Bitso, said Ripple’s technology has allowed her company to charge “a fraction of (traditional) wire transfer fees”.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.