Ripple has started targeting Asian markets for the propagation of their technology. More specifically, the settlement company is focusing on the Japanese and Indian markets. Navin Gupta of Ripple, Managing Director for India, Southeast Asia, Middle East and North Africa, recently spoke about these plans in an interview with TechCircle.
Ripple opened an office in Mumbai last year, taking into account his expansion plans. In addition, the company has recently added banks in India to its network of banks worldwide known as RippleNet. They also seem to be making moves to hold a dominant market share in the Indian market, with product SVP, Asheesh Birla, stating:
"We realized that if you take the top three banks in India on Ripple, you get 80% of the share And then we looked at – where is the future? And so we realized that over the next five years, one billion people will become a bank in India, but they will be channeled through their phone, so we started targeting mobile phone providers and telecommunications. "
With this in mind, Gupta recently spoke in an interview about how Ripple wants to tap into the $ 70 billion remittance market. He also talked about his solutions and the main competitor he has in the field. Ripple is combined with a 60-year-old banking system, known as the World Interbank Telecommunications Society, better known as SWIFT.
The legacy system has an approximate 6% error rate, something that Ripple intends to identify and improve through their solutions. Gupta said:
"We are building a message-based highway through which money can travel and, mind you, it does not have to be cryptocurrencies, legal currencies can also travel through our blockchain protocol."
Gupta also revealed details on other markets that Ripple is looking specifically at, like banks in the Middle East region. The area is famous for oil and the underlying financial transactions are usually made in millions. As seen above, Ripple seems to have a plan with every market they are targeting. Gupta said:
"We are already working with several banks globally, especially in the Middle East region, and we have customers in Africa and Europe that are conducting millions of transactions through our network protocol instead of using SWIFT. "
Gupta went on to illustrate the various problems raised by SWIFT, highlighting the high rate of failures, liquidity and speed. The 6% failure rate of SWIFT and the liquidity to be stored in the form of accounts are hard to swallow for banks. Instead, Gupta said, the Ripple solution is built similarly to the WhatsApp messaging platform. He said:
"For example, if a bank wants to send money to another, it must first add the second bank to its trust list, as it would in the case of a WhatsApp contact. check the name of the bank, the account and do the due diligence on all the anti-money laundering rules in force. "
He made a comparison with WhatsApp, stating that the blockchain protocol corresponds to the transactions in terms of credit and debt with a settlement time of 3 to 5 seconds.
Gupta has developed the solution to the leading edge of Ripple for cross-border payments known as xRapid, which uses XRP as liquidity for cross-border transactions. He also talked about the constant use of xRapid between the payment corridor of Mexico and the United States, where XRP is used as a bridge currency.
On the Ripple strategy in India, Gupta talked at length about the size of the remittance market in the subcontinent. He said:
"India has the largest corporate and retail remittance market for a global value of $ 70 billion and we are confident that we will be able to grab a significant portion of that market with our new technological solution that has worked for other banks.  He also talked about the expansion plans in the future, keeping in line the vision described by Asheesh Birla. The SVP had previously stated that it would have 50% of the market in India. He said:
"And so now, I think that in our pipeline we probably have 50% of the market in India, integrated on Ripple or in the deal, in the type of gas pipeline to be signed in India. And guess what, we'll bring it back to Wells Fargo, and say it's not a better way to send Ripple to India. "
" We are working with four banks in India, Axis Bank, Yes Bank, IndusInd Bank and Kotak Mahindra Bank. We are talking to the others and soon our list of banks will grow. "
The Reserve Bank of India is still negative about the state of the country's cryptocurrencies." Gupta also talked about this, and he adhered to Ripple's vision of not going against regulators and to work with them to provide payment solutions, he said:
"Regulators have to make sure that the criptos are not used improperly and we fully support that cause. It takes time for a regulator to make decisions and ensure that all traces are covered and all parties involved can continue to work under the best conditions. "