During the pilot, MoneyGram will utilize XRP, the native digital asset of the Ripple Ledger, with the aim to speed up payment flows through xRapid, Ripple's solution for on-demand liquidity.
International Payments is a multi-billion dollar industry and the current way of using a centralized authority who hold enough foreign reserves to be able to facilitate the cross-border transfers is very inefficient considering the time and cost involved.
"The inefficiencies of global payments don't just affect banks, they also affect institutions like MoneyGram".
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Ripple, a bitcoin rival, claims it can settle digital transactions in three seconds or less, making it attractive to financial institutions.
"Every day blockchain technology is changing the norm and encouraging innovation". The two banks use the blockchain to speed up cross-border payments between the United Kingdom and the US. "By using a digital asset like XRP that settles in three seconds or less, our clients can move money as quickly as information.".
While banks around the world are experimenting with blockchain (the underlying technology behind bitcoin and Ripple) to lower money transfer costs, skeptics of Ripple say its XRP currency is unnecessary to carry out transactions. "We're hopeful it will increase efficiency and improve services to MoneyGram's customers.".
MoneyGram is a global provider of innovative money transfer and payment services and is recognized worldwide as a financial connection to friends and family.