Facebook’s announcement of Libra has allowed cryptocurrencies to gain mainstream attention, inadvertently helping Ripple, suggested Brad Garlinghouse during the recent Brainstorm Finance 2019 event. In a recent development, Latin banks – Banesco Panama and Scotiabank Chile have reportedly run proof-of-concept for cross-border payments with Ripple.
According to iupana, Banesco Panama is aiming to use blockchain technology to facilitate instant and more efficient transfers over the Dominican Republic, Panama, Portugal, Puerto Rico, Spain and Venezuela, between its group of banks.
The proof-of-concept ran in mid-May and used Ripple’s xCurrent technology to send a single transfer from Panama to Peruvian bank Intergroup. This was to get the feel of how and if blockchain-based solutions will reduce costs and help replace traditional methods that need funds sitting in Nostro-Vostro accounts for liquidity.
Executive Vice President of Innovation and Transformation at Banesco Panama, Rodrigo González, said that he was impressed by the speed and the traceability of the transfer and that it “gives you traceability, and arrives directly, anywhere in the world.”
Even if Banesco decides to go ahead with Ripple’s solutions, it has plans to initially offer it only to banks in the group. The executive added,
“Even if I am part of the Ripple ecosystem, I can’t just send a transfer to anyone.”
iupana also added,
“Banesco’s proof of concept used the xCurrent network for the funds transfer, seeing use of Ripple’s cryptocurrency XRP as being a step further than it is comfortable with.”
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