The contract signed between SAMA; Saudi Arabian Monetary Authority, and Ripple has exceeded a year. However, SAMA’s Head of Innovation; Mohsen Al Zahrani recently confirmed the news.
This news is that KSA central bank will no longer be Utilizing Ripple technology. Instead, two local financial institutions will accept xCurrent. They will begin their services by March 2019.
Meanwhile, this news will basically help the community. This is because the Chief Marketing Strategist left the $49 billion startup. And so, news like this sends a positive yet powerful signal to the whole sphere.
According to the global head of infrastructure innovation; Dilip Rao, the Central banks are taking a step towards Blockchain technology. This is because they have recognized how Blockchain can change cross border payments.
This, however, results in decreased obstacles to commerce and trade for not just consumers but also corporates. SAMA is currently headlining this route as they are the first central bank to offer resources to regular banks.
These resources will allow swift payments via Ripple’s technological Blockchain solution.
An Actual Step In The Right Path
It is worth noting that SAMA will not be adopting the technology for clear reasons. This reason entails SAMA being the Central Bank of KSA. However, their only consumers are the Governor and of course regular banks.
Moreover, SAMA will support the Cryptocurrency project via aiding to educate and possibly motivate regular banks to utilize xCurrent.
xCurrent differs from SWIFT that functions in groups and basically not good for a constant and increased amount of transactions. For xCurrent, it is actually the opposite of SWIFT.
The xCurrent enables members to transfer increased amount and high value transactions swiftly with comparatively decreased fees.
A possible resolution is that one of the three boosted via the Ripple Inc enables cross border payment fully. It is executed with end-to-end monitoring abilities but it does not include XRP.
As a matter of fact, with an upgrade to the newest version, it enables the banks involved in the upgrade to merge XRP via xRapid.
Basically, SAMA is a governing entity that oversees every payment. This includes parents that are coming in or going out, a wide system of the ATM’s in the country, banks and also point of sales.
In 2018, Mohsen Al Zahrani stated that SAMA is not anti-digital. And so, they will experiment with distributing their very own computerized currency.
To Wrap It Up
Basically, the mere fact that there is an affirmative progression with the two banks and every single thing is on the right path; this is a positive light for Ripple.
However, if all the plans go in the right direction, the universal payment processor that is to provide speed, efficiency, and price cutting will have a stronghold in the whole of UAE and not just KSA.
This is because they are yielding to Islamic banking and monetary philosophies. It simply implies that they are one step ahead of all their competitions.