An executive for Ripple tells CNBC that the company wants to bring its blockchain-based payments technology to China – while also ramping up adoption of its XRP coin.
Ripple’s blockchain technology is used to accelerate cross-border payments and Jeremy Light, vice president of European Union strategic accounts at Ripple, say that China “is definitely a target” for the company, according to CNBC. Ripple already entered into a deal earlier this year with Hong Kong-based financial services firm LianLian International, which joined the blockchain network – known as RippleNet – in order to speed up cross-border payments between China, Europe and the U.S.
CNBC notes that Ripple blockchain technology is different than Bitcoin’s, as the latter relies on “miners” to validate transactions, while Ripple’s “transactions are validated by a network of independent servers — owned by banks, retailers and traders.” While Ripple currently has more than 100 financial institutions signed up to RippleNet, only one of these companies is from China.
Although Ripple is seeking to increase the adoption of its XRP coin, CNBC notes that its gained little traction with financial institutions.
Most banks and financial firms are uninterested in the cryptocurrency side of Ripple’s offering, however. Ripple is mostly known for its digital token, which is used to essentially bridge payments from one currency to another.
Instead, lenders have sealed deals with the start-up to use its xCurrent product, which is aimed at settling payments instantly around the world.
The Chinese e-commerce was a $627-billion business in 2017.
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