So why is Ripple great for Banking?

Ripple is a private, centralized, permission based Blockchain.  It is basically the opposite of bitcoin.  To really understand Ripple we need to first understand how information gets exchanged between countries.  For example, once you build your credit score in America, it won’t be accepted when you move to Korea.  There are different systems and rules that are applied in Korea.  Most of all they don’t take into account all the work that went into building your credit score in America.  Same goes for the financial industry.  In fact, it moves slower in the financial sector because of all the laws, rules, and regulations involved.

Replacing the SWIFT System

Banks use the SWIFT system when sending money from country to country.  When people do wire transfers, the SWIFT system is what is used.  However the SWIFT system is an old and outdated technology.  It is very expensive and takes 1-2 days to clear.  Money can be lost because of the exchange rates as well.  However with Ripple, there is a agreed upon protocol that would be real-time and cost virtually nothing.  Customers will be able to send money from country to country quickly and basically for free.

Why Korean Banks Can Benefit?

There are millions of Koreans that live outside of Korea and make money abroad.  Many find it hard to send money back to Korea.  How with Ripple customers will be able to send large amounts of money in and out of Korea.  Ripple will be an alternative to the old style of global transactions.  Through the protocol, the money can be monitored and follow each countries laws and regulations.

Why is Ripple not Free?

The reason why Ripple is not 100% free is that because if they made it free there will be a higher chance that people will spam the network.  So once it does a transaction a fraction of the ripple coin (XRP) gets destroyed increasing the value of Ripple.  Ripple can handle thousands of transactions per second and can handle the huge fluctuations in the network traffic.  The banking industries will hold 70% of the market share which will help in case of market crashes and make Ripple a really stable cryptocurrency moving forward.

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Ripple has been making a lot of waves with their marketing and partnerships.  South Korean bank Woori Bank has officially completed testing with cross-border payments with Ripple.  Early news is that the test was a huge success.  It was also announced that Ripple CEO Brad Garlinghouse might be coming to South Korea later this month.  These are clear signs that Woori Bank will soon be adopting the Ripple system.

Ripple’s goal will be to incentive Woori Bank to eventually use the x-rapid program which will help with liquidity and settlements.  Ripple has been aggressive in getting banks to test their system using x-current or x-rapid protocols.  If the banks go with the x-current protocol, Ripple will introduce them to the x-rapid protocol.  Ripple has previously partnered with a Japanese bank consortium and the SBI Holdings group who have already finished their testing and are already working with Ripple.

Coinbase/Ripple Partnership?

The partnerships and the relationships Ripple are forming is slowly building up.  Furthermore, Ripple is close to being listed on Coinbase.  This is great news for Ripple (XRP) given that is already a top 3 crypto and the fact that there is so much demand for it.  There are already a lot of competitors coming into the market which is why it will be crucial for Ripple to be listed on Coinbase as soon as possible.  The price of Ripple should see a huge jump once this is done.  It could be as early as this week!

Getting listed on Coinbase will be huge for Ripple.  If Ripple wants to really break out this year they need a major exchange like Coinbase where it is easy to use, it is one of the major exchanges and people can take fiat currency and buy crypto directly.  Now people will not have to go buy bitcoin or ethereum and transfer it to another exchange.

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