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Why Ripple is Primed To Revolutionize Banking As We Know It

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[...]But Ripple isn’t just a cryptocurrency- it is an entire system, able to handle cross-border payments, be a payment system for corporations, payment providers and banks, and revolutionize the way payment providers create liquidity in markets. To each of these ends, Ripple has three solutions: xCurrent, xVia, and xRapid.

Furthermore, xCurrent is the solution that Ripple has for cross-border payments. It works by having 4 key systems working together to send, receive and verify all the information needed for a transaction to take place. The components are as follows: [...]

https://www.blockhaven.ca/releases/why-ripple-is-primed-to-revolutionize-banking-as-we-know-it

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Posted (edited)

Most cryptocurrencies are only meant to be a currencies, or potentially a store of value, with few designed and intended to be used as an actual system. Ripple is unique, as it is not only aiming to be a currency, but an entire system for companies, banks, and other financial institutions to use for sending and managing payments, at a speed that current systems can't hope to match.

Currently, the way money is transferred across borders is a long process, taking anywhere from 3-5 days to complete one transaction. The transaction usually needs to pass through multiple parties in order to make the exchange from one currency to the other, with each charging their own fees for the role they play. The bank the payment originates from and the bank the payment arrives at also charge their own fees for the transaction. To top it all off, SWIFT, the system utilized for the bulk of cross-border payments, charges their own fees for the privilege of using their system. For instance, Bank of America charges the following:

· Outbound domestic wire transfer- $30

· Outbound international wire sent in foreign currency- $35

· Outbound international wire sent in U.S. dollars- $45

Some banks also charge for receiving wire transfers, further increasing the cost of cross-border transactions. All this adds up- and fast. It is estimated by 2020, 2.2 Trillion USD will be spent making payments every year. In short, the current system is slow, complicated, convoluted and sometimes unreliable, as around 4% of transactions fail.

Ripple, by contrast only charges .00001 XRP per transaction, which at current dates is only about .0004 cents. SWIFT is ancient and it is time to move on. :beach:

Edited by cryptoxrp

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