Just as Bitcoin and other cryptocurrencies have triggered a payments revolution around the globe with blockchain technology, Ripple has taken this revolution to the financial industry. There are many reasons why financial institutions would prefer a Ripple-based system. After all it does not compete with them. This is probably one of the reasons why Ripple and its partnerships with global financial institutions have been making the headlines since 2017. However, Michael Graham recently told CNBC that “the ripple ecosystem is definitely going to have to get a lot bigger to justify where XRP is right now. “Maybe its most recent deal with the UAE exchange will help it get there.
UAE Exchange Joins RippleNet
UAE Exchange, a foreign exchange company with more than 9000 employees across 40 countries, has become the first exchange in the Middle East to partner with the RippleNet network. The partnership will serve to streamline cross-border and real-time payment solutions that the UAE Exchange engages in. RippleNet is Ripple’s enterprise network that uses blockchain to instantly send and receive cross-border payments. The exchange has officially announced its partnership with RippleNet on Twitter.
UAE Exchange CEO is a Blockchain Enthusiast
Promoth Manghat, CEO of UAE Exchange has long been a blockchain technology enthusiast. In a statement following the partnership announcement he said: “Incorporating Ripple’s blockchain technology into our payments systems will bring customers an enhanced, new payments experience. The early adoption of this game-changing technology allows us to offer a competitive service, as it will have an impact on the speed and cost of cross-border transactions.” Whether UAE Exchange will pass the cost savings on to its customers or will add them to their own bottom line, remains to be seen.
Ripple Highlights the Partnership with UAE Exchange
Ripple is also excited about the prospects of this new partnership. The global head of Ripple’s innovation infrastructure, Filip Rao said the following about the partnership: “We chose to focus on solving inefficiencies in key corridors where payment flows are significant and growing. Adding a market leader like UAE Exchange to RippleNet will bring instant, certain, low-cost payments to the millions of retail customers in the UAE who send money abroad.”
However, the official announcement regarding the partnership between Ripple and the UAE Exchange doesn’t reveal whether UAE Exchange adopts Ripple’s underlying technology fully or will just be a user of the network. A short statement by Ripple’s representative just shows appreciation for the partnership. Once again, it is unclear if the benefits from this cost-cutting technology will reach the end user.
Is the End User at the Center of this Partnership?
Mr. Manghat who strongly believes in blockchain technology, said the following on an interview with Arabian Business: “The average consumer may never know about blockchain, but indirectly he will reap the benefits of the efficiencies it brings forth across industries in his everyday life.” Mr. Manghat might want to highlight the benefits of a cheaper, more efficient service. He might also want to highlight the efficiency factor by itself.
In any case, Ripple is quickly enlisting more remittance companies such as UAE Exchange. The buzz about Ripple’s real-time payment solutions is growing speedily. Global remittance giant, MoneyGram will also start using XRP in their payment system. Moreover, LianLian International also joined RippleNet, just as Tokyo-based SBI Virtual currencies announced an exclusive XRP listing.
Centralized Blockchain Payment System Grows
All these announcements have helped XRP’s price lately. Notably, when MoneyGram announced its XRP implementation, the price of XRP climbed along with shares of MoneyGram, which went up by 13 percent. Following its partnership with UAE Exchange, XRP has some additional good news to sell to the market and keep growing in the markets. Anyone who wants to buy into the hype must be aware that Ripple is centralized and that its foundation controls a sizable portion of the XRP coins that exist. This means Ripple can easily manipulate the market, so buyers must tread carefully.