The Ripple company announced its intention to bring the business into the field of cross-border payments to the Chinese market. This has been told by the Vice President of EU strategic accounts Jeremy Light to CNBC.
The company plans to introduce DLT-technology to accelerate its cross-border payments. According to Light, China is a "country and region of interest” for the development of the crypto industry.
The technology used by Ripple was originally developed to speed up the processing of payments and has already attracted more than 100 financial institutions to its network.
It is also possible that the company will face strong competition from local financial firms offering alternative payment solutions.
Ripple made the first attempt to enter the Chinese market in February, signing an agreement with the Hong Kong financial firm LianLian. The partnership was designed to accelerate and reduce the cost of cross-border operations between the U.S., Europe, and China.
Currently, among Asian countries, Ripple is more widely represented in Japan, where the application for automatic permanent settlement of internal payments, Money Tap was launched.
In Europe, the company cooperates with Santander, UniCredit, UBS and Standard Chartered.
WHY IS IT IMPORTANT?
- Ripple technology, which is basically a network of electronic money transfers, is universal. It can be set to operate with various types of currencies, including cryptocurrencies and other exchange services (for instance, credit cards, gift cards or certificates, a system of user points), between client devices or external systems in different areas, regions or jurisdictions.
- In spring this year, the head representative of Ripple in Asia-Pacific region, Sagar Sarbhai, has already reported about the company's intention to enter the Chinese market. According to him, Ripple discusses issues of cooperation with public services and financial institutions of China, tries to settle regulatory and legal relations, and also demonstrates the possibilities of new payment technologies.