Ripple’s on-demand liquidity tool is often touted as a way for users to send fast, low-cost payments, without having to pre-fund a destination account. According to a prominent Ripple executive, the on-demand liquidity tool offers a “huge value proposition” in terms of remittance.
In the latest episode of “The Ripple Drop,” Kevin Mole, Vice President of Product Marketing at Ripple, spoke about the on-demand liquidity tool that is offered by xRapid to make transactions cheaper for enterprise users.
“I think there is really two main reasons- speed and low-cost. Because XRP settles every 3 to 5 seconds. The ability to do cross-border settlements instead of 2 or 3 days in just 2 or 3 seconds end to end is a huge value proposition”
According to Mole, the existing traditional banking network is so slow that in order to deliver a fast experience, customers have to infuse funds to the recipient accounts or the destination. Users sometimes store cash in those accounts for days which, according to the Vice President, is a highly inefficient and poor use of money.
On-demand liquidity conducts payments via XRP from one country to another and enables instant payment execution. Mexico and the Philippines are the two countries where the on-demand liquidity service is currently available.
According to Mole, the two countries are very large “receive-side” countries and have high demand in terms of cross-border payment settlements. He further revealed that around $31 billion of remittances goes into Mexico, while Philippines receives $33 billion primarily from the US, Europe and some parts of Asia “to cover basic necessities like food, rent, school fees, for their children.”
Cross-border flow is of “high-impact,” he added. Mole further disclosed that the aforementioned remittance corridor is the first and the team will be opening several others over the year.
A Twitter user, @XRPcryptowolf, commented,
“This is just a few of the many reasons why #XRP will become the global bridge digital asset of the world. On-demand liquidity solves so many problems across the world”
Subscribe to AMBCrypto’s Newsletter
Credit: Source link