American Express has recently announced that they will be commencing their entry into the Chinese market, which has been predicted as being the biggest card payments market by late next year. This move was made as a joint venture with LianLian Group and is the first venture to not process payments through the state-controlled UnionPay network.
The approval reportedly allows the company to process and settle payments in CNY domestically by setting up their own network in conjunction with their partner. The venture is named Express [Hangzhou] Technology Services Co., and is required by the Chinese government to complete preparations for operations within a year.
Notably, both American Express and LianLian Group have been in a partnership with Ripple, and are confirmed to be members of RippleNet. AmEx joined RippleNet with a vision to aid Small and Medium Enterprises with moving money late last year. LianLianPay on the other hand, joined the network in February this year and has over 150 million registered customers.
While this not only marks the entry of Ripple into one of their highest priority markets for cross-border payments, it is also important to note that the company is planning to move into the Chinese market, as seen by postings on their official job portal. The job postings have since been removed, but are still present on job portal Glassdoor.
China has a strict policy against cryptocurrencies, thus ruling out the adoption of XRP-powered xRapid in the country anytime soon. However, the government seems all for the use of blockchain and DLT, which is what Ripple utilizes in its xCurrent and xVia products. However, the kicker for XRP HODLers is contained within the implications of this joint venture, which provides the much-needed fiat liquidity in the Chinese market.
Moreover, as pointed out by crypto-influencer Dr. T on Twitter, both members also have needs for independent cross-border payments, potentially opening up possibilities of a more full-fledged usage of RippleNet’s capabilities. What exactly the network can achieve can be seen by the feature included known as multi-hop. As explained by Craig DeWitt, the Director of Product at Ripple:
“Multi-hop gives Ripple members the ability to transact with banks or payment providers or digital wallets that they don’t have a direct relationship with. That’s important because in today’s world you need a bunch of bilateral relationships clunkily put together in a chain in order to move money. Multi-hop makes that thing of the past.”
Asheesh Birla, the Senior VP of Product at Ripple, also explained how more clients signed on to xCurrent increases the reach of the network as a whole. He stated:
“xVia allows you to use a one standard connection to get you all the benfits of RippleNet and our products. Without xRapid they would use xCurrent and where xRapid is available, they can then add on xRapid and move money on demand using XRP and payout instantly. They get reach wherever xCurrent is available, whether that be a bank [or] a cash payout provider.”
This generally translates as being bullish for the blockchain and DLT space in general, as the move into one of the most-vaunted markets for Ripple has come to a realization.
Subscribe to AMBCrypto’s Newsletter
Ripple’s initiative invests in Bolt Labs to improve secondary payment channels and expand interoperability
Ripple’s arm, Xpring which invests and incubates in companies and individuals which help improve the XRP ecosystem, invested in Bolt Labs. With the new investment, Xpring hopes to develop solutions that will help improve the security of secondary payment channels and increase the interoperability by integrating with the ILP.
Bolt is a private, off-chain scaling solution which was built on top of Z-cash, a privacy-focused cryptocurrency, has attracted more than a few well-known investors in the crypto-space and Ripple’s Xpring is one among them. In a blog, Bolt Labs said that their solution will focus not only on ZCash but also other publicly available cryptocurrencies that do not have inherent on-chain privacy features.
It also stated:
“The potential for these implementations to be networked together with technologies like Interledger opens the potential further for cross-chain interactions with these privacy guarantees baked in.”
The above statement suggests that they might have a “potential” implementation for these on Interledger Protocol [ILP]. ILP was created at Ripple developed by the Interledger W3C Community Group. ILP aims at connecting two different blockchains, to integrate two different ledgers and have seamless operations between them.
This would vastly benefit the payments industry, which is facing a revolution at the hands of a nascent technology like blockchain. Ripple, a payments provider, which is leveraging cryptocurrency and blockchain to facilitate faster payments, would benefit largely from this partnership. In addition, this could also signify a potential development on the XRP Ledger and its on-chain/off-chain privacy and the currency, XRP.
A Twitter user @XRPCentre tweeted:
“If the solutions being developed by the company are able to improve the privacy of the ILP transactions, they would also be enhancing the privacy of XRP/ILP payments, which is a very demanded feature…. It’s all about interoperability and destroying network effects. If ILP succeeds in being the best protocol for cross-protocol/ledger transactions, you’d naturally search for the best asset therein.”
Subscribe to AMBCrypto’s Newsletter
BitMax.io [BTMX.com] and EtherZero [ETZ] established Strategic Partnership
Bitcoin [BTC] and Litecoin [LTC] Price Analysis: BTC relishes bull’s company, while bear takes over LTC’s market
Blockchain Cruise takes place on the Mediterranean from June 9th-13th!
Bitcoin SV [BSV] gets hit with another reorg as multiple blocks get orphaned, including a 128 MB block
Stellar Lumens [XLM/USD] and XRP/USD Price Analysis: Sideways clamp holds strong as prices stagnate
Bitcoin SV [BSV]: John McAfee ‘sues Calvin Ayre in four different countries’; vows to bankrupt him
Cardano [ADA]: Proof of Stake [PoS] throws away expensive process & advances the network, says Charles Hoskinson
Cardano [ADA]: We will emerge from 2019 more decentralized than any other network, says Charles Hoskinson
Bitcoin [BTC]: Don’t buy into it if you are not ready to be rekt, warns Richard Heart
XRP takes another step into mainstream adoption as Skype hints a possible integration
Is John McAfee among crypto adherents who knows Satoshi’s true identity?
Breaking: SBI Virtual Currencies delists Bitcoin Cash [BCH] in response to Binance’s Bitcoin SV delisting
Bitcoin [BTC]: Officials crack down on massive BTC fraud in ‘largest pill seizure in the history of New Jersey’
Bitcoin [BTC], Bitcoin Cash [BCH] accepted as payments by Corporate Traveller following tie-up with BitPay