Positive things continue to happen for the Ripple ecosystem. More specifically, the technology provided by this company is of great interest worldwide. In Saudi Arabia, a new sandbox environment has been created to solely focus on this technology. Surprisingly, this initiative is launched by the Saudi central bank. It seems they see a lot of merit in Ripple for cross-border payments.

There are many benefits of RIpple’s technology. Especially when it comes to their Xcurrent tool, things will get very interesting moving forward. It is an ideal liquidity provider for cross-border payments. Settling these transactions instantly is something a lot of financial institutions want to experiment with as of right now. After all, most transactions occur digitally and can be settled instantly regardless. For some unknown reason, that is still not the case.

Saudi Arabia Banks See Merit in Ripple

With the Saudi central bank now focusing on this technology, an interesting future lies ahead. The bank created a sandbox environment for local banks to experiment with xCurrent technology. It is unclear if this will also involve the use of the native XRP asset, though. Right now, there is no official word on that front, although it is possible we will see some trials. All banks in Saudi Arabia seem eager to experiment with this technology for instant cross-border payments.

Ripple’s global head of infrastructure innovation Dilip Rao comments:

“Central banks around the world are leaning into blockchain technology in recognition of how it can transform cross-border payments, resulting in lower barriers to trade and commerce for both corporates and consumers. SAMA is leading the charge as the first central bank to provide resources to domestic banks that want to enable instant payments using Ripple’s innovative blockchain solution.”

For now, it remains unclear what the banks in Saudi Arabia plan to do exactly. While the technology is available in a sandbox environment, the actual products and services remain unclear. Experimenting with this technology will bring positive attention to Saudi Arabia in the future. The xCurrent project is designed for enterprise use and is being trialed by other financial institutions around the world.

Header image courtesy of Shutterstock

Share.

About Author

JP Buntinx is a 30-year old FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he is working to achieve the same level of respect in the FinTech sector.

Leave A Reply

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.