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The US blockchain technology company Ripple has recently released a new version xCurrent, version 4.0, the most popular product of the company being launched.
Developed to provide real-time settlement solutions (RGTS) capable of competing with the widely used SWIFT global payment infrastructure, the xCurrent version 4.0 of the company should be of great interest because it is integrated with xRapid, Another great cross-border payment solution from Ripple.
The use of xRapid, which uses the XRP token, is however only optional and, so far, Ripple's xCurrent 4.0 users have not chosen to use it.
The xRapid integration has no buyers
Ripple's xRapid solution is the only product that uses XRP to provide "on-demand liquidity" that uses a bridge currency when it facilitates cross-border transactions.
Despite its apparent advantages for banks and other financial institutions, xRapid saw minimal adoption. This leaves the additional feature of xCurrent v4.0 to integrate xRapid as a further opportunity for banks and banking institutions to use XRP.
"Using your xCurrent software, you can now place on-demand liquidity using xRapid."
However, according to Asheesh Birla, the product Ripple SVP, the integration of xCurrent v4.0 with xRapid depends on whether the xRapid solution is appropriate and available in the user's country.
A spokesman for the San Francisco-based company announced it had started xCurrent 4.0 in September this year, with some of the high-profile customers in the transition process including American Express and Santander.
However, it appears that there is no one who obtains XRapid-based XRP liquidity on demand. Maybe it's because xRapid integration remains an optional feature of the new xCurrent version or perhaps due to political and regulatory concerns.
Birla explained, saying to Coindesk:
"In other countries, where there is no good regulatory authorization or a digital asset infrastructure, we continue to use xCurrent as it is, with fiat liquidity".
So far, customers of the xCurrent product, including BBVA and Banco Santander, have not been upgraded to the new version or are not trying to integrate the xRapid solution.
Encouraging for XRP, Ripple announced at the beginning of October that it has partnered with three companies as the first to use XRP to facilitate real-time payments.
The three, MercuryFX, Cuallix and Catalyst Corporate Credit Union, would start using xRapid to complete cross-border commercial payments.
Ripple said that these customer reports indicate that xRapid reduces both the required cost and setup time, instead of relying on the traditional banking system and fiat liquidity.
Independent market makers on cryptocurrency exchanges are required to provide liquidity for these transactions.
Ripple has also signed partnerships with three cryptocurrency bursaries in Bittrex, Philippine & # 39; s Coins.ph and Bitso in Mexico. The exchanges act as independent market makers who provide the liquidity necessary to facilitate transactions.
But despite these developments, xCurrent has an option that will make xRapid's integration ideally a prolonged process.
According to Birla xCurrent, including v4.0, is a "local software package, "Which means that its use is adapted to satisfy specific customers, and users can choose to integrate or not, which means that banks are likely to continue to focus on xCurrent and not on xRapid.
xCurrent 4.0 has advantages
Although customers may not be ready to integrate xRapid, the latest version of Ripple & # 39; s xCurrent offers many benefits.
Among the most important improvements of xCurrent 4.0 is an element of "multi-hop, "A feature that allows you to forward payments through a chain of users on the xCurrent platform.
In addition to relying on some large money hubs like Citi, for example, Multihop allows smaller banks like Siam Commercial Bank of Thailand to enjoy the same reach as their larger counterparts.
Customers who choose not to integrate xRapid will also benefit from another feature called "FX loose".
The feature allows xCurrent customers to pre-finance payment bank accounts in other countries by purchasing fiat currencies in bulk. Customers are therefore able to access a constant exchange rate.
Yet another feature called "advanced forwarding forward, "It will connect an xCurrent customer to a local payment line such as ACH, which allows financial institutions to make sure that payments actually reach their end user, unlike SWIFT that does not have this provision.
With many other features, xCurrent v4.0 could attract many more customers than those currently available. However, in the two months, it was on the market, Ripple's latest version of xCurrent did not attract much attention.
Disclaimer: This is not an investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.
