The American cryptocurrency exchange, Coinbase, announced the launch of cross-border payments via USDC and XRP.
Coinbase announced that XRP, the second largest altcoin in the market and the exchange’s stablecoin USDCoin [USDC] can now be used for cross-border payments with no applicable fee on the transfer. The exchange added that these coins were “optimized for cross-border transmission.”
There will be no fee levied on transfers between Coinbase users. However, an on-chain network fee will be applicable when sending funds outside Coinbase. XRP can be sent in three to five seconds to a host of countries that Coinbase supports, with no limit on the number of coins that can be transferred.
USDCoin will take twelve to seventeen seconds and will see an on-chain fee of under $1, if sent outside Coinbase.
The exchange added that the reason behind the aforementioned cryptocurrencies being chosen was because they were “suited for smaller international money transfers due to their faster processing and lower transaction fees.”
XRP’s parent company, Ripple, saw a slew of announcements pertaining to its cross-border payment aspirations. On 28 March, Federal Bank, a leading private bank in India, partnered with Ripple to use its network for cross-border payments. The private bank rolled out remittance platforms in the United Arab Emirates [UAE], where Ripple has a considerable customer base.
The International Association for Trusted Blockchain Applications [INATBA], a body of policy-makers promoting the adoption of blockchain and cryptocurrency within Europe recently included Ripple as their founding member. This inclusion will allow Ripple to plant its foothold in Europe’s growing Distributed Ledger Technology [DLT] sector.
Ripple is now facing opposition in the cross-border payments realm from the Stellar Lumens’ [XLM] partnership with IBM. IBM’s World Wire platform will seek the implementation of the Stellar protocol to build its cross-border payments platform because of the latter’s open-source and decentralized nature that can send both fiat and digital currencies.
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