Many believe that among the businesses that are going to be affected by cryptocurrencies is MoneyGram and other money transfer companies. Could you imagine the amount of money wasted on transaction fees? However, blockchain technology has provided an answer to this problem. Using blockchain technology, cryptocurrencies have provided a cheaper alternative that can be used not just by transacting individuals but also by companies and organizations.
MoneyGram and Ripple
Just recently, Money Gram has teamed up with Ripple in order to test the possibility of using the cryptocurrency for payments. The Dallas-based company, MoneyGram, announced that they will be using Ripple in order to reduce the cost of transferring money and in order to speed up transactions using the xRapid payment network.
Using ripple coin, this will allow foreign exchange settlement. They also mentioned that this gives the financial institutions the “ability to unlock liquidity and access multiple corridors with one pre-funded originating account”.
Ripple has been in the news during the last few weeks. In fact, it has been able to become the second largest cryptocurrency. For a short period, it has even usurped Ethereum from its spot.
But with recent reports of South Korea preparing a bill that will completely ban cryptocurrencies, Ripple has experienced a drop in its value. However, after MoneyGram announced its partnership with Ripple, the digital currency’s value few by almost 15% to $2.22.
What Makes Ripple Special?
One of the things that made Ripple special is the fact that it can confirm transactions in just a few seconds. According to Ripple, the average transaction on their network takes between two and three seconds to be completed. On the other hand, you will have to wait for around 51 minutes in order for Bitcoin transactions to be completed.
In addition to this, Ripple has focused mainly on international banks and financial institutions. In November, Ripple made some noise by teaming up with American Express and Santander. The goal is to speed up cross-border transactions between the UK and the US.
Ripple CEO Brad Garlinghouse mentioned that “the inefficiencies of global payments don’t just affect banks, they also affect institutions like MoneyGram”. He also added that “Money transfer companies are incredibly important because they help people get money to their friends and loved ones”.
By using Ripple, Garlinghouse mentioned that MoneyGram will them be able to move money “as quickly as information”.
Ripple was quite an underdog from last year compared to other cryptocurrencies. But after major companies investing in the company including Google Ventures and Standard Chartered Bank, things have changed for the digital currency.
Could it be possible that people will one day have the option to send cryptocurrencies instead of sending fiat currencies via MoneyGram? Given the reality that MoneyGram and other money transfer firms are also in danger of becoming obsolete, this is really not far from reality. MoneyGram may have sensed that they have no other choice but to adopt blockchain technology or suffer becoming outdated. Cryptocurrencies may have the answer that people are looking for in order to reduce the fees in sending money.