- Money remittance giant and digital currency exchange firm convert money with xRapid technology
- Partnership incorporates XRP digital currency with money transfers giant’s payment flows
MoneyGram is planning a strategic partnership with Ripple, through which they will be able to leverage the power of MoneyGram’s system for money transfers and Ripple’s digital currency towards a mutual benefit.
Specifically, MoneyGram is looking to integrate XRP – Ripple’s cryptocurrency – into its payments system.
Alex Holmes, CEO of MoneyGram, is looking at the future with optimism; the ever-emerging options for international money transfers are a big part of that excitement. He warmed up to the idea of mining for cryptocurrencies a long time ago, and this is where the company sees the proposition’s value.
Via a foreign exchange investment vehicle entitled xRapid the companies will be able to convert their investment into XRP, and then again to another fiat currency within seconds. That way, they will be better equipped to fight against price volatility. According to Holmes, this kind of solution will allow for huge time and money savings.
He also mentioned that international money transfers are the hardest thing to tackle, and the process of doing so requires much more than just messaging technology. Bank authorisation is a crucial part of the process. Holmes explained that it is possible to communicate through Ripple’s API, allowing for faster money transfers without delays often associated with the traditional T+2 FX markets.
Holmes also touched upon what the central banks are doing: outlining their inefficiency when it comes to international interactions and claiming that Ripple presents a viable alternative to them.
Even though blockchain technology may not solve all the problems related to international money transfers, it is certainly an interesting venture to explore, even if Holmes believes the technology itself is still in its infancy.
He stated that it is important to keep searching for new ways to streamline what MoneyGram’s business is built on, and we are bound to see some exciting developments as time goes on.
