Ripple, the third largest cryptocurrency project by its total market cap, confirmed that it is targeting the large Chinese market with its cross-border blockchain payment technology, CNBC reported this morning. Ripple targets China despite China’s anti-cryptocurrency reputation? Here’s why.
Ripple Targets China
Jeremy Light, VP of European Union Strategic accounts at Ripple, had a phone interview with CNBC and said, “China is definitely of interest, it is definitely a target.“
Earlier this year, Ripple signed a deal with the Hangzhou-based financial institution LianLian International. This partnership is aimed at improving the cross-border transactions between China, Europe, and the US. The partnership was announced initially but it remains unknown if the financial institution is currently using Ripple technology yet.
China is widely known as anti-cryptocurrency but Ripple’s distributed ledger technology is aimed at aiding larger financial institutions. If Ripple were to enter this tight market, it would most likely focus on its blockchain technology rather than advancing the adoption of its cryptocurrency, XRP.
xCurrent Product Interest
Most banks and financial firms are currently uninterested in the cryptocurrency side of Ripple’s offering. Most large banks are testing to see if Ripple’s tech can save them both time and money. More specifically, lenders have signed deals with Ripple to use its xCurrent product, which is aimed at settling payments instantly around the world.
Ripple’s xRapid platform – where XRP is used – has seen interest from money transfer firms, such as Western Union and Money Gram. Not many large banks or financial institutions are interested in xRapid.
Ripple currently has more than 100 financial institutions signed up to its network, and only one Chinese client. It has a long way to go in the Chinese market and it remains unknown which of its products the company plans on pushing.
XRP Price Movement
According to CoinMarketCap, XRP is currently trading at $0.292 a coin, up 12.09% in 24 hours.
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