It’s been a while since Ripple started to endorse its blockchain innovation, and the cryptographic currency, XRP, regardless of its claimed lion’s share—as a quicker and less expensive approach to circulate cash globally.
Western Union’s CEO, Hikmet Ersek said that while his company is still in the experimenting phase with Ripple’s product xRapid, which uses XRP as a channel to transfer money for international currencies and for payment settlements, this tie-up has not worked out as expected as there has been no cost-cutting or savings in the company.
As per reports of Fortune, Hikmet Ersek said:
“We are always criticized that Western Union is not cost-efficient, blah blah blah, but we did not see that part of the efficiency yet during our tests,”
The CEO believes that Western Union would be interested in adopting XRP for payments if it could lower the company’s costs and help in cost-cutting of the company.
“The practical matter is it’s still too expensive,”
This declaration could add up to a mishap for Ripple, which has established its business and transformed the digital money XRP into the third most significant available. The worth of XRP is more than $20 billion; on the major point that its innovative technology offers more features than other payment techniques.
Ersek forewarned that the pilot might be too soon on and “too little” to reach inferences, as Western Union has just tried the digital money for exchanges between two monetary forms, namely, U.S. dollars and Mexican Pesos, up until this point.
Western Union has sent only 10 installments utilizing xRapid to date and an excessively few to procure critical outcomes, as per Asheesh Birla, Ripple’s senior VP of an item.
These statements of the CEO of Western Union triggered the Vice President of Ripple.
Asheesh Birla, the VP of Ripple said:
“If they were to move volume at scale, then maybe you would see something, but with 10, it’s not surprising that they’re not seeing cost savings,”
Birla further stated that Western Union does millions of transactions a month, and he is not surprised that with 10 transactions it didn’t have earth-shattering results. Birla said that if Western Union were to expand the pilot to all of its payments, the firm would cut down on at least 50% of costs per transaction.
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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.”
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