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How Ripple facilitates overseas payments by pre-funding liquidity with XRP

The renowned United States of America-based cryptocurrency provider company, Ripple projects itself as a payment provider and solutions company also. Ripple provides “one frictionless experience to send money globally“. The company does this by providing a decentralized approach to the traditional payment.

Ripple employs its state-of-the-art industry-standard blockchain. Furthermore, the company urges that the advancement in technology with this century shouldn’t let payments remain ancient. After all, payment systems even in the state of barter have existed since the dawn of mankind on this planet.

In today’s financial world, banks are the facilitators. But, governments and country-wise regulations and compliance laws cause hindrance in overseas payments. Furthermore, cross-border international money transfers aggregate a hefty fee for the processing of payments, with little to no transparency in the system. The whole system becomes increasingly unreliable.

Ripple aims to, and also has somewhat successfully achieved a better efficient, economical, transparent and compliant way of transferring money. Ripple’s method of making transactions and payments employs blockchain.

How Ripple achieves this?

The company has created RippleNet to tackle the problem. With interoperability and scalability in mind and decentralization in their structure, Ripple’s goal seems to be getting near. They provide accessible, fast, inexpensive,g global, standard-compliant and reliable payments.

International banks heavily rely on Nostro Accounts for banking overseas. They are the local accounts where international financial giants store assets for seamless payments in local markets.  Ripple provides liquidity solutions for the money that keeps raking and doesn’t get used up productively.

Ripple’s global payment network solution, Ripple does this by providing traditional fiat-to-fiat relationship on its network. Furthermore, with this, they provide additional Third Party Nostro Account handling. Furthermore, the most reliable way according to them is to use their native digital asset, XRP.

XRP seamlessly handles the problem of time, transparency and costs. RippleNet provides easy, fast, inexpensive transactions on its blockchain ecosystem.

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