Know why the international banks should switch to ripple network

The Ripple blockchain network is being used by a multinational banking consortium to improve the efficiency of cross-border payments.

Make cross-border payments

National Australia Bank (NAB), Australia’s largest commercial bank, announced an agreement with Canadian and Israeli banks to improve the security and efficiency of their payment systems, share innovation initiatives, and more.

The collaboration aims to improve consumer experiences by lowering costs, speeding up payment processing, and increasing security. Transactions that could have taken up to two days to become effective can now be performed in minutes, according to reports. 

The Ripple payment network currently operates with financial institutions from over 55 countries around the world. “To source liquidity during cross-border transactions, as an alternative to established methods,” their On-Demand Liquidity (ODL) service leverages the digital asset XRP.

As a result of their cooperation with the National Australia Bank, the Canadian Imperial Bank of Commerce (CIBC) and Israel’s Bank Leumi, both recognized small business banks, are now using the Ripple payment network for cross-border transactions.

“We’re excited to partner with CIBC, and as a proof of concept, we’ve already worked with them to use Ripple’s blockchain technology to perform international financial transactions between our institutions,” the massive Australian bank said.

The banking institutions’ partnership is expected to offer new doors for each to “access first-class worldwide innovation projects and insights,” according to NAB Government General Supervisor NAB Labs Jonathan Davey in the financial institution’s official announcement.

Our clients expect us to do things differently, and strategic partnerships like this allow us to tap into the ideas, expertise, and capabilities of like-minded organizations, in this case, the opportunity to tap into two major global banks, to help us gain world-class insights from world leaders in order to better understand our clients.”

Regulations have no effect on Ripple

Despite the SEC versus Ripple Labs case, the company has been growing its international reputation and has a number of global relationships.

In Australia, the Ripple community is gaining popularity. It is recognized by financial institutions, and corporate members collaborate with government officials to establish a crypto regulatory framework.

Last year, the business recommended three principles as the foundation for an Australian regulatory framework for digital assets. The final report of the Australian Senate’s “Select Committee on Australia as a Technology and Financial Centre” included and cited this.

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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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