Last month, The CoinFront reported that German bank Fidor had begun using the Ripple network to facilitate cross-border payments. Now, Ripple Labs reports they have brought on two US banks to do the same.
The banks, Cross River Bank in New Jersey and CBW Bank in Kansas, will be working with Ripple Labs to offer much more efficient international money transfers.
As a result, Europeans and Americans will now be able to transfer money between each other much more efficiently. Whereas before the process could take days to complete, Ripple’s technology will allow money transfers to be completed within seconds.
This will be a massive improvement over the current system for transfering money, which is based on the centuries-old paper ledger model CBW Bank chairman Suresh Ramamurthi called “a digital skin on an antiquated transaction process”.
What This Means For Ripple
Ripple Labs believes this new agreement will help increase the volume of trade within the network, and at the same time make it more liquid.
Liquidity is a problem facing most cryptocurrencies. while things like Bitcoin ATMs and services like SecuraCoin help if you happen to live in the vicinity of one, most people still have a difficult time converting their funds from cryptocurrency to fiat and back again.
But having banks where users can acquire cryptocurrency would make things much easier.
“The most exciting part?” The article concludes, “this is only just the beginning.”
Ripple Labs Partners With Two American Banks
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