Euro Exim Bank, the first bank to officially use Ripple’s flagship product, xRapid, is planning to go all ‘rapid,’ as it announces full integration of the product in a few weeks.
Ripple’s Rapid Dominance
Euro Exim Bank became the first bank to jump ship from SWIFT’s global caucus, and many banks have swiftly (no pun intended) joined in return, leaving the large association of more than 11,000 banks to ‘stay in front of the game.’ The bank prides itself as the best global financial service provider and assures its customers of having the quickest processing in issuance and relay of documentations—and there is no obvious language than speed in Ripple’s xRapid.
Part of moving forward and staying in front of the game—Euro Exim’s maxim—is the recent decision to fully integrate Ripple’s products into an extensive system involving more than 80 countries across the world. Graham Bright, the head of compliance of operations in Euro Exim told American Banker in an interview:
“There’s been a lot of talk around the markets about how blockchain technology can assist in trade finance. We’re interested in moving forward and creating a platform for payments for our clients who are in over 80 countries at the moment, making sure they have a smooth, frictionless way of paying local people.”
The product, great for facilitating cross-border payments, works by facilitating transfers in ripple’s digital currency, XRP, by converting fiat cash first into XRP, then making a reverse conversion into required local currency after a quick, seamless transfer that occurs all within seconds.
Ripple’s Global Head of Strategic Accounts, Marcus Treacher, explained how xRapid a faster and more efficient alternative for banks, eliminating the need to store money first in foreign reserves.
“When you use XRP, instead of having to pre-park all your money in foreign accounts around the world, you hold your funds locally, under your control, your stability, your creditworthiness,” he explained.
Rapid Vs Swift, More than Battle of Speed
The faceoff between SWIFT and Ripple’s xRapid is not set to end anytime soon, and the latter is even expected to garner more partnership in 2019. Like all things, evolution in technology is inevitable. Bright explained that more than speed, xRapid was more efficient and secure. According to him, one of the banks many transactions on SWIFT’s network got lost this month, amidst an untraceable ocean of transactions.
Ripple and SWIFT are also expected to engage in a quasi-debate at the approaching ITC Conference this year in Germany.