In a statement, Ripple CEO Brad Garlinghouse described the MoneyGram tie-up as a strategic one, and said it would demonstrate XRP's ability to lower costs for money transfers between friends and families. Like its longtime rival Western Union, MoneyGram has faced competition from a new generation of low-priced Internet-based services like TransferWise.
Many see it as a close contender to Bitcoin, which is by far the biggest cryptocurrency with a market value of more than $250 billion (roughly Rs. 15.9 lakh crores). "By using a digital asset like XRP that settles in three seconds or less, they [MoneyGram] can now move money as quickly as information".
According to the press release, XRP's transaction fees are equivalent to fractions of a penny, unlike Bitcoin's fees of around $30 per transaction. The current model for these payments requires money transfer companies to use pre-funded accounts across the globe for sourcing liquidity.
'This is the Netherlands, you have to answer questions'
President Donald Trump's attempts to ban entry into the U.S. from citizens of several countries with large Muslim populations. He's been received well by the Dutch government, and we hope that he can be received well by the people of the Netherlands".
The development follows last week's comment by Ripple that "3 of the top 5 global money transfer companies plan to use XRP in payment flows in 2018", which was meant to address the growing concerns over the lack of use of Ripple's native token. Ripple is at the forefront of blockchain technology and we look forward to piloting xRapid.
"Every day blockchain technology is changing the norm and encouraging innovation".
The partnership would see MoneyGram operate a pilot programme of xRapid, a new Ripple service. In the past 24-hours, Ripple has surged by nearly 20% and at the price time, the cryptocurrency is trading at $2.09 with over $5 billion trading volumes and over $81 billion market cap.
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