Transferwise Contemplates Ripple’s Cross Border Technology
Ripple has made an impact on cross-border transactions and the only thing left is the need to work on its partnerships to gain support. Co-founder of one of the biggest cross-border money transfer company TransferWise says Ripple is much needed however has not implemented it yet.
Taavet Hinrikus, the co-founder and chairman of Transferwise, explained why his company did not adopt Ripple’s technology in Fortune’s show ‘Balancing the Ledger.’
Transferwise is a service that was founded by two individuals that needed a much easier solution of transaction money between their origin country of Estonia and UK where they were working. The two individuals named Taabet and Kristo wasted time and money on transferring their Euros and Pounds back to Estonia’s fiat currency, and thus created a system of transferring money more comfortable and faster for individuals facing the same issues.
No wonder Transferwise has got individuals like Richard Branson and Peter Thiel amongst investors with more than 4 million users transferring $4 billion every month.
Talking about Ripple Taavet said:
“Today… there’s not widespread adoption for any of these. If every bank in the world was connected to the Ripple network, it would be amazing. Yet, how many banks today are using Ripple in production is a very short list… In that sense, we’re big supports of Ripple or anything else”
Why not, Ripple?
Ripple’s rapid movements of transfers along with cheap transactions have created an ecosystem of banking institutions turning their backs to SWIFT and using Ripple’s technology instead.
However, companies like Transferwise have not opted for it. The main reason for this was Ripple was still not adopted by most of the banks, and thus a company like Transferwise using Ripple may not make sense as of yet.
Even Western Union CEO Hikmet Ersek gave the same reasoning of Ripple not being used. Overall Ripple is growing concerning partnerships. However, the amount of banks that need to be influenced is far too many.
Transfergo, a competitor of cross-border services such as Transferwise has already implemented Ripple’s technology of xCurrent.
It will be interesting to see how financial institutions and cross-border payment solution companies now see Ripple given how it sustained during the bear markets of Cryptocurrency!
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