Marjan Delatinne, head of the banking sector, recently said that banks are reluctant to accept XRP-based xRapid due to a lack of regulatory clarity.
He provided the reasons why non-financial institutions are more interested in using xRapid to process cross-border payments than banks.
"Just to clarify, no bank is using it, because as you have probably heard, the regulatory framework on the use of digital assets is not very clear to banks, but payment service providers and some other financial institutions are less subject to these obligations ".
Marjan highlighted the use of the Ripple digital currency (XRP) for the xRapid product. Using the illustration of someone sending money from the United States to Mexico, Delatinne said that one of the main use cases that Ripple feels very fond of is cross-border settlements.
"Imagine you're in the US You have $ 100 and you want to send it to a user or someone in Mexico, then go to the crypto exchange, trade $ 100 on XRP and immediately afterwards XRP is converted back to Mexican pesos and is delivered to the local authority or to the financial institution that has an account with the crypt exchange.
So this is actually changing the way current liquidity is handled … So this product, I think, is somehow the last way we see that cryptographic resources can help build the global economy using the costs associated with liquidity management ".
In October, Ripple launched the commercial application of the xRapid product at the Swell 2018 conference in San Francisco.
xRapid is designed to use the native Ripple XRP token to facilitate instant cross-border cross-border transactions. The product is unique in the blockchain product of the company known as xCurrent, which has already been adopted by some major financial institutions.
One of the largest banks in the United States, PNC Bank joined RippleNet in September this year in order to facilitate cross-border settlements for its customers using a xCurrent product. Therefore, Ripple hopes that many xCurrent users including PNC Bank will eventually switch to xRapid.