I’ve never talked about Ripple but I think now deserves a little bit of my attention for the big steps it is making!
Ripple succeeded in winning the priority target it had set itself, China, through the approval of the joint venture of American Express, to make payments in the country.
China has approved the operation of AmEx, making it the first American company to have direct access to the e-commerce market in China. This news allows AmEx to solve problems related to payments and transactions in Yuan. Settlement of payments can be made through the joint venture LianLian Group, which is a Ripple customer.
AmEx I want to remember that it is a global payment platform like MasterCard, had previously shown interest in the Chinese market, certainly one of the largest in the world. This was the main reason for joining the joint venture with LianLian Group and, as a result, this agreement allowed AmEx to become the first enterprise to process payment processing to operate outside the state-controlled UnionPay network.
The latter, now a partner with RippleNet, provides fast and seamless global payment services to the Chinese e-commerce market. You can process and settle payments directly in Yuan Renminbi (CYN), the current currency of the Republic of China.
The company called Express (Hangzhou) Technology Service Co. is currently under review by the Chinese government to prepare all the cards and complete the operation within a year.
American Express and LianLian Group were already members of RippleNet. AmEx joined together at the end of last year, with the goal of making better service to small and medium-sized businesses in payment processing. LianLianPay who joined the platform earlier this year already has over 150 million registered customers.
It will use Ripple’s blockchain, to carry out e-commerce transactions in China, and xCurrent for cross-border payments. Ripple was already pushing to try and enter the Chinese market. Finally it seems that the government has joined the initiatives of the fintech company.
According to the btcnews report, a Ripple official said that the company has nurtured this idea and thinks that there will be implications in the Chinese market before the end of this year.
The Chinese government has recently lifted the ban on the use of cryptocurrencies. Now this digital resources are legalized and can be used as a payment method. Regardless of the strict Chinese regulations against ICOs and cryptocurrencies, American Express has challenged this by entering the e-commerce market of this market, which has grown to $ 627 billion more than last year.
An estimate of cross-border payments in the country is set at $ 1.32 trillion by the end of 2018. The Chinese government appears to be interested in using the Blockchain and DLT technology, which Ripple uses in its xCurrent and xVia products. The Chinese central bank sees this move as a great way to bring in new foreign investors by moving big capital into China.
Ripple has always been optimistic in his “crusade” which aims to solve cross-border payment problems. This is what he hopes to achieve by launching his decentralized financial instruments that will make better the processing of these payments all over the world. I am fully convinced that it will be a great revelation!
I hope you enjoyed this article!