February 8, 2019: Ripple announces its commitment to expanding its blockchain solutions in Southeast Asia including in the Philippines.
Ripple has worked in onboarding businesses into its blockchain-based cross-border payment and remittance solutions. In an interview with local broadsheet BusinessWorld, Ripple said it wants to expand into “local clearing” and link Southeast Asian markets tightly with other countries where it is also present. To do that, Ripple aims to increase the number of countries where users can send and receive remittances. (Read: How to Buy XRP in the Philippines)
Ripple prides itself for creating solutions to enable frictionless sending of money around the world through the blockchain. Its digital asset XRP solved the problem of liquidity. Ripple Vice President Marcus Treacher said there are 2 key problems in remittances. First, how to get the money to the receiver in another country. Second, how to make sure the financial institution who will handle the receiver has enough funds.
“What we do is we offer XRP as a method for banks and payment companies to put enough liquidity as required into foreign currencies, into foreign countries to support the payment that goes to the Ripple.”
Currently, Ripple’s solution rivals that of SWIFT, the standard international payments network. In a separate interview, this time with Ripple South Asia Managing Director Navin Gupta, he detailed how Ripple is closing the gap between itself and SWIFT, as it signs 200 financial institutions across the world, with 50% of these institutions located in Asia and the Middle East. (Read More: BloomX Brings Bitcoin Over The Counter to Palawan Pawnshop)
Additionally, he noted how clear regulatory signals in the ASEAN region are making it much favorable for companies like Ripple to move ahead on digital assets. In particular, the Philippines is on its way to release rules on Initial Coin Offerings (ICOs) and Virtual Currency Exchanges by June 2019.
Just last month, SBI Holdings, a big finance firm in Japan, stated in its financial report how Ripple has the potential for cross-border payments. It noted how its technology can facilitate a standard for international payments and trade finance.
Ripple has various partners in the Philippines whether directly or indirectly. Vienna-based startup Transpaygo is using Ripple’s xRapid to facilitate remittances to the Philippines. Coinone from South Korea is utilizing Ripple’s xCurrent to allow remittances between the 2 countries, coursed through local pawnshop and remittance firm Cebuana Lhuillier, allowing 58,000 Filipinos in the East Asian country to send money home via Cebuana, which has 2,500 branches nationwide.
SendFriend, previously reported in BitPinas is another company using xRapid targeting US – Philippines remittances. Lastly, HashCash is a California-based company that is targeting money transfers between Australia and the Philippines.
This article is first published at BitPinas on February 8, 2019: Ripple Looking to Prioritize SE Asia, Philippines