What's more, the Japan Bank Consortium created a virtual currency and blockchain working group to explore the institutional use case of digital currencies, such as XRP, to source on-demand liquidity for these cross-border payments. XRP remains the most efficient digital asset for payments with transaction fees at just fractions of a penny, compared to Bitcoin fees of about $30 per transaction.
There is a very important incentive for payment companies to join the blockchain based instant transfers, staying relevant and keeping the business. The firm also boasts average transaction times for XRP of two to three seconds.
The company has historically been involved in using pre-funded accounts to fulfill transfers by customers, which can tie up capital.
Banks within the Japan Bank Consortium are one of many institutions that are actively working with Ripple to solve the multi-trillion dollar problem plaguing the financial industry, corporates and consumers worldwide - the lack of liquidity (or cash) to instantly send or receive low-priced global payments. With a digital currency such as the one Ripple provides, the wait time could be reduced.More news: One Of These Insiders With 'Berkshire In Their Blood' May Succeed Buffett
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The goal of the pilot is to "move money as quickly as information", Brad Garlinghouse, CEO of Ripple, said in a statement.
"We are excited about this pilot and a long-term strategic partnership with MoneyGram". Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid.
According to a press release, MoneyGram will test Ripple's xRapid service due to its claimed speed and cost efficiency. The move helped Ripple's popular bitcoin alternative, XRP, move higher on the day-defying a nearly-universal cryptocurrency selloff. Whether online, or through a mobile device, at a kiosk or in a local store, we connect consumers any way that is convenient for them.