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Banks are hesitant to use XRP XRP-powered cross-border payment solution or any other cryptocurrency – due to regulatory uncertainty, according to Ripple's global banking head.
At the Euro Finance Tech conference in Frankfurt, Marjan Delatinne explained why financial institutions and non-bank payment service providers are the first to adopt the new technology.
"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 ".
Delatinne also exposes a typical case of use for xRapid, using an example of someone sending a payment from the United States to Mexico.
"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 use liquidity only when you need it. And when you do not need it, you do not use it … So this product, I think, is somehow the last way we see that cryptographic resources, or digital resources, can help build the global economy using the costs associated with liquidity management. "
Ripple launched xRapid for commercial use in October. So far, Ripple has confirmed the presence of at least three payment service providers, including MercuryFX, Cuallix and Catalyst Corporate Credit Union.
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