Coinone exchange’s Cross, officially confirmed that it is not using xRapid due to regulatory obligations that have to be met for using cryptocurrency-based [XRP] services.
Coinone is a South Korea-based cryptocurrency exchange which launched ‘Cross’ – a remittance app utilizing Ripple’s services to facilitate speedy cross-border payments on December 10, 2018.
When asked if Cross was open to using Ripple’s xRapid, Cross replied to a Twitter user named ‘XRP Veteran‘:
“Hello overseas remittance is cross 🙂 Our service is not used in the remittance business according to the Government guidelines of the Republic of Korea. The Xrapid solution is not available at this time because it is based on a cryptocurrency XRP transfer, unlike the Xcurrent solutions used by cross.”
To a subsequent question, Cross replied that if the cryptocurrency regulation was removed then they would be open about looking into xRapid solutions.
Thailand’s Siam Commercial Bank became the first financial industry on RippleNet to pioneer a key feature called, ‘multi-hop’. The multi-hop feature eliminates the need to have a bilateral relationship between financial institutions to settle payments.
Since XRP is explicitly legalized and endorsed as per Ripple’s CEO Brad Garlinghouse, Coinone could still use the multi-hop feature and connect to its already existing partner, SCB, without actually using XRP.
Dr. T, a prominent individual in the XRP community also suggested the same in his tweet. He said:
“I guess since they explicitly said they can use xCurrent, David’s idea of xRapid transaction happening in the outer flow of a multihop payment seems like only alternatively. They have SCB connection, and that makes things possible as Thailand has legalized XRP for banking use too”
As per Dr. T, David Schwartz, the CTO of Ripple explained on Discord about the multi-hop feature for payment settlements without having to bear the burden the regulations.
Although Coinone has officially and explicitly announced that they can’t use xRapid due to regulatory concerns, the XRP community explains another way to use the xRapid solution.
XRP Research Centre, a Twitter user replied to Dr. T saying:
“Yeah that’s genius. Thanks for helping me to understand this back then. I think there will be a couple of key jurisdictions in the future that will be the chosen hubs for xRapid liquidity.
My take: -Thailand.-Japan. -Malaysia. -Luxembourg. -Malta. -Brazil. -Hope USA.”
Dr. T replied:
“Thank you for your analysis. Which one of these are you thinking is critical?
I also think Korea will legalize digital asset use in the future. The countries that concern me however are China and India.”
CryptpHeimdall, another Twitter user commented:
“Or don’t put your hopes up too much. xCurrent serves them just fine in this case.”
To this, Twitter user Zerp_Hound replied:
“xRapid is still the end game. The only thing slowing it down is regulatory clarity for crypto and global liquidity for #XRP.
Both of these take time but we are moving closer to achieving both of those everyday.”
Subscribe to AMBCrypto’s Newsletter
SendFriend goes live in New Jersey; prepared to take on a $11 billion remittance corridor with Ripple
SendFriend, a next-generation remittance service that focuses on cross-border payments between the U.S. and the Philippines, today announced that it had gone live in the state of New Jersey, via a Twitter announcement.
We’re all excited for our launch, and today is the Day (for New Jersey)! Join thousands of Filipinos and come out to the Philippine American Friendship Committee Parade and check out our booth – We will be here all day! pic.twitter.com/PkcrGChwZ9
— SendFriend (@sendfriendinc) June 23, 2019
Ripple and SendFriend’s partnership was announced in late 2018, with the CEO of the latter, David Lighton, expressing his excitement at a Barclays Event in 2019. At the same event, Lighton also confirmed that SendFriend would be using Ripple’s xRapid payment solution that leverages XRP as a liquidity provider.
There is approximately $11.09 billion transferred between the U.S. and the Philippines in remittances every year. These largely use traditional payment methods that are slow and less efficient, when compared to newly developed blockchain-based solutions. The chart below shows the flow of remittances into the Philippines, with the U.S. accounting for the highest volume.
By using Ripple’s xRapid payment solution, money can easily be transferred in a few seconds. Not only does this save millions in fees by taking away middlemen, but it is also less time consuming.
Although xRapid has slashed fees and time for cross-border payments drastically, it has not gained traction due to a lack of regulatory clarity around cryptocurrencies. On February 11, 2019, SendFriend had announced the provision of an option for Overseas Filipino Workers [OFW] to send money “securely and reliably” across borders, with fees that are “65% lower than the industry average” in one “seamless flow.”
David Lighton had said,
“We are humbled by the support of our investors, who share in our vision to reduce the costs and improve the experience for the millions of Overseas Filipino Workers (OFWs) who send money home to support their families… This investment will allow us to build out our team, focus on community engagement, and marketing efforts.”
A Twitter user @mister_pace, commented,
“Based on these rates. You save about $13 to send 1000 using SendFriend over The next lowest MoneyGram”
Subscribe to AMBCrypto’s Newsletter