The catalyst for this decision was the analysis of the current state of the region by the company, as well as a conclusion about its unsatisfactory condition. Ripple is a giant blockchain company whose interest is now concentrated precisely in the Asia-Pacific region since, in their opinion, it is he who is still quite promising and unprocessed.
In official social networks, Ripple, referring to a World Bank article, says that in the APAC money transfer market, there was a jump of 12% in 2018. They also mentioned that transactions were made annually in the region, totaling about $ 2 billion. With such indicators, the transaction market in the region should work much more smoothly. However, the company claims that this is not entirely wrong.
Expensive Market in the Asia-Pacific
The main reason is how expensive these transactions are. According to Ripple, sending $ 200 here may have a commission of more than $ 20.
It is worthwhile to clarify that money transfer systems work in such a way that they must have several pre-funded accounts, which is why the waste of such companies is growing. Account management usually involves intermediaries who, in turn, overstate the direct transaction cost.
A vital influence factor is also time. Traditional cross-border operations usually take a lot of time, on average several days, which makes it not only more expensive but also ineffective in some situations.
Regardless, There’s Still High Demand
Just a few years ago, transactions in countries such as Thailand and the Philippines reached $ 529 billion, a new record. In 2019, their growth amounted to $ 21 billion, reaching $ 550 billion and “becoming the largest source of external financing.”
Can Ripple Save the Day?
It is effortless to see how blockchain can significantly solve the problems of money transfers in the Asia-Pacific region. Firstly, blockchain solutions are much more economical than traditional methods. This helps people lose less when they need to send money to their loved ones.
Besides, the time factor becomes irrelevant. Blockchain transactions are calculated at an unbeatable speed, sometimes within a few seconds. Reliability and accessibility are also quite strong factors since almost anyone with access to the Internet can enjoy the offers that the blockchain brings.
This is what Ripple hopes to bring to the attention. It increases the importance of the company in solving problems with money transfers. The company has already played in the Thai market in partnership with Bitkub, the local crypto exchange.
In a recent interview, Bitkub CEO Ropp Jiraut announced that the exchange is Ripple’s official Thai partner and will help simplify cross-border transactions using XRP.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.