Hi, big Ripple and XRP supporter here, hodler since may 2017, love this forum etc..
So anyway, today I was talking with my girlfirend who is currently staying in UK, about how this spring it should be possible to use Santander's app that uses Ripple's xCurrent, making it possible to send our native currency among others, seamlessly, fast and with very low fees.
I've had some, although not a lot of experience with making international transfers and it was usually quite awful. It took 3 days+ and consumed significant amount of money for a fee.
Therefore, when I first read about what Ripple is doing, I thought that this is it.
I understood that the reason for ineffectiveness of today's international transfers are:
The need for the banks at each end of transaction, to have corresponding arrangements with each other, or else there is a chain consisting of multiple banks, which means multiple fees and longer settlement time.
The need for the banks to keep billions of dollars in pre-funded accounts in each country's currency, which as far as I understand only the biggest banks can afford (City, JP Morgan etc.),
and that those banks charge hefty fees for using their rails.
The need for existence of a central bank.
Outdated messaging system created many many years ago (SWIFT).
Ripple is addressing all of those issues and promises great performance at a low cost.
In my mind that was completely revolutionary and outstanding, enabling things that were not possible before. But then my aforementioned girlfriend said she is using Revolut and that she has already used it to make PLN->GBP transfers, which she claims settled in an order of seconds and that there was either no, or a negligible fee.
And it made me wonder. I understand that Ripple and its products, is so much more than what I described. I understand that there is the fact that it meets all regulations, that it aims mostly at servicing corridors that are ineffective but have great volume, or those with exotic currencies. I understand that it aspires to create internet of value and that it should enable to transfer anything that holds value, not only currencies - the potential is huge.
But how on earth in this world of supposedly terrible international transfers, with those troublesome pre-funded accounts that only biggest banks can afford to have, does Revolut manage to do what I thought will be only possible after introducing blockchain powered solution such as xCurrent/xRapid ?
And how is Ripple going to be better ?
I also want to say that i don't doubt Ripple, I just need understanding. I know that things I wrote might not be accurate or I might fail to grasp the concept of how money is moving around the world, but if so, please enlighten me.