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Banesco Panamá and Scotiabank Chile testing cross border payments with Ripple


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https://www.xrparcade.com/news/banesco-panama-and-scotiabank-chile-testing-cross-border-payments-with-ripple/

Thank you.  First Nepal, now Chile and Panama.  It is these backwater economies that are moving fastest and it is clear that some of the delays are to allow banks to upgrade, familiarise themselves an

Thank you.  First Nepal, now Chile and Panama.  It is these backwater economies that are moving fastest and it is clear that some of the delays are to allow banks to upgrade, familiarise themselves and bed in.  The adoption phase is under-way and obviously going very well.
 

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Banesco’s proof of concept used the Xcurrent network for the funds transfer, seeing use of Ripple’s cryptocurrency XRP as being a step further than it is comfortable with.

Once integrated into the Ripple network, Banesco aims to initially offer blockchain-based transfers only between banks in the group (covering the Dominican Republic, Panama, Portugal, Puerto Rico, Spain and Venezuela). That’s because Banesco needs to strike a deal on rates and exchange rates bilaterally with each recipient bank.

“Even if I am part of the Ripple ecosystem, I can’t just send a transfer to anyone,” said Gonzalez.

 

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Scotiabank Chile

The second bank to run a POC with Ripple was Scotiabank Chile. Scotiabank (Canada) was one of the 12 banks in the R3 consortium to trial XRP for cross border payments back in October 2016.

“We wanted to use their blockchain technology to avoid intermediary banks when sending funds,” said Daniel Kennedy. The correspondent banking system adds complexity and cost to funds transfers – as well as making the process slower, he said.

What we identified was that Ripple technology works really well. The bank’s technology was not ready to “plug in” to blockchain and achieve our expected efficiencies. So we ended up having two messaging layers: The Ripple messaging layer, which is only messaging, and the bank’s transfer layer for sending funds. Our transfer layer could not be replaced, in this instance, by blockchain.”

To properly take advantage of the potential of blockchain, Scotiabank needs to upgrade its payments infrastructure, said Kennedy.

“As soon as you do that, the process becomes a lot more efficient, a lot more effective. And you can start having almost one account. If you’ve got a small business in Chile with clients in Lima, they can deposit into an account that has the same number and it just gets transferred. But we’re not there yet.”

 

 

Edited by Julian_Williams
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