SCB Thailand Taps Ripple for Blockchain Payments
Already, SCB Thailand launched a blockchain platform that uses the Ripple company’s xCurrent system to facilitate cheaper cross-border money transfers.
Now, the Thai financial institution also hinted that there would be a further announcement about SCB using XRP directly via the xRapid payment system.
We will be using Blockchain Technology for ripple but as for XRP, you may have to wait for further announcement.
— SCB Thailand (@scb_thailand) May 22, 2019
Major Thai Bank Could Integrate Ripple Cryptocurrency
Last week, a sharp-sighted Twitter user spotted an update to the bank’s SCB Easy app in the App Store stating that users are now able to send funds abroad “at the cheapest rates via Ripple.”
SCB transfers via Ripple. And with that we have mainstream adoption in Thailand. pic.twitter.com/n9QRt5Uq7X
— ₿ryan (@_bjb) May 18, 2019
On May 22, the bank confirmed that they are using blockchain technology for payment transactions via Ripple, but not with the XRP cryptocurrency – yet.
This information suggests that the SCB is currently using Ripple’s xCurrent payment system that facilitates quick, low-cost cross-border transactions for its users.
The xCurrent product serves as an alternative to SWIFT where money transfers are conducted in fiat. On the other hand, xRapid uses XRP crypto tokens to offer on-demand liquidity to make transactions cheaper for enterprise users.
If the SCB does dive headfirst into cryptocurrency transfers, it would be a major bull signal for Ripple (XRP) investors.
SCB Uses Ripple’s ‘Multi-Hop’ Blockchain Feature
While the hint that it will dive headfirst into cryptocurrency is new, SCB has partnered with Ripple for nearly a year as it builds out its blockchain payment system.
According to a Sept. 2018 blog post, SCB was the first bank to use RippleNet’s “multi-hop” feature that allows the Thai bank to “settle frictionless payments on behalf of other financial institutions on the network.”
The multi-hop feature’s main benefit is that financial institutions must no longer maintain a bilateral relationship (a direct one-to-one connection) with each other to settle a payment.
The post explained further:
“Using multi-hop, SCB will be able to receive and forward on a payment without a bilateral relationship between the originator and beneficiary institutions.”
According to Ripple, the multi-hop feature results in cheaper and easier payments.
Banks: The Key to Crypto Adoption?
Ripple continues to onboard financial institutions and payment processors, having recently inked its 200th enterprise client.
Earlier this month, Ripple announced a partnership with Ria Money Transfer, the world’s second largest service provider in the remittance industry with a yearly volume of $40 billion. About that same time, the San Francisco-based blockchain startup scored another partnership with the Saudi British Bank (SABB).
Despite the company’s recent achievements, many in the crypto community dislike Ripple, arguing that its network is centralized and the company stands athwart what Satoshi Nakamoto envisioned when he launched Bitcoin to give control to the users instead of banks.