In the last year, the currency owned by Ripple, a company that bills itself as using blockchain technology to build the payment system of the future, has made tremendous profits and numerous partnerships. But, the company hasn’t made any meaningful impact in the Asian markets. Especially in China, a global power where ripple is non-existent. However, this is bound to change in the near future as the company has aggressive plans to expand in China.
As per reports, banks, payment providers, and regulators in China are set to test Ripple’s settlement solution, xCurrent. The solution aims to enable financial institutions to settle remittances instantly and provide end-to-end tracking for all cross-border payments. All tests are carried out using Ripple’s blockchain-powered solutions.
Sagar Sarbhai, the head of Ripple’s regulatory relations, said:
“This year you will see more announcements coming in on China, in terms of educating and differentiating us from some of the other cryptocurrencies that are out there.”
One Of The Few Blockchain Companies With A Working Product
By having a laser-sharp focus on enabling financial transactions via the blockchain, Ripple has provided a real-world blockchain solution to traditional finance companies. A number of remittance service providers have adopted the company’s xRapid solution.
But, China hasn’t been welcoming to Ripple, in spite of the company’s success. This is due to China having a controlled economy, where foreign products are not given much preference. The company has already experienced some delays with its launch on the Chinese market. With strict regulations, China has a different vision for how businesses must operate on its land, and this may not fit with Ripple’s vision.
However, the company indicates that this might change soon. Ripple has been talking with regulators, banks, and payment service providers, but momentarily, these talks concerning XCurrent are still in their initial phases, and there may be some waiting involved. The introduction of XCurrent shall bring about a lot of changes in the Chinese market, and this could be the company’s biggest progress to date.
No further announcements have been made by Ripple in this regard. It is evident that the company is extremely focussed on the China market, which is huge but very difficult to enter.
Only two forces can limit Ripple’s vision, namely, the local capital controls and regulatory laws. But, Ripple does not see any such problems affecting it right now.
Sarbhai said: “In our discussions with China’s regulatory bodies so far, this is something that hasn’t come up. We’re essentially a software company, licensing software to banks and enterprises who want to move money cross-border.”
China Historically Against Cryptocurrencies
China is amongst the strictest regarding cryptocurrency regulations and announced a blanket ban on all cryptocurrency exchanges in 2017. The government first closed domestic cryptocurrency exchanges, and later on, entirely restricted Chinese citizens from trading digital currencies or investing in ICOs.
Although Ripple’s XRP is a cryptocurrency, the company calls its purpose different since XRP serves as operates a decentralized payment settlement solution for banks and financial institutions.
“Built for enterprise use, XRP offers banks and payment providers a reliable, on-demand option to source liquidity for cross-border payments,” the firm often describes its offering.