Saudi central bank will be the first of its kind in the region to use Ripple blockchain. Ripple announced the bank will use the xCurrent network to facilitate cross-border payments.
xCurrent will instantly settle payments sent in and out of the Kingdom of Arabia. This will add greater transparency and lower costs according to the announcement by Ripple.
“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,” said Dilip Rao, Ripple’s global head of infrastructure innovation.
Customers will experience faster and cheaper transactions.
Elsewhere, Bank of England, the U.K.’s central bank started working with Ripple last year. Other partnerships hoping to use Ripple include an announcement by UAE Exchange. The exchange will use RippleNet product to facilitate cross-border payments.
Western Union is also piloting the program in its cross-border payment platform. This is according to an announcement from the company. The western union will partner with Ripple to test its XRP in settling transactions and for capital optimization. This is also after the company partnered with Moneygram to test Ripple for the same purposes.
Ripple said the new move has potential to shift how banks in KSA send money around the world. KSA has access to banks and payment providers and all financial institutions on RippleNet.
Ripple uses XRP cryptocurrency. However, it does not compete with fiat. Other cryptocurrency enthusiasts criticize Ripple because it’s cryptocurrency system does not work as other deregulated and decentralized digital assets. In other words, many view it as working within and not opposed to the traditional financial system.