A study on global money transfers by the World Bank indicates that in 2016, a sum of $422 billion, out of $573 billion, went to various developing countries.
The process of transferring money from one country to another, referred to as remittance, is on course to see a massive change with the adoption of blockchain technology.
Already, well adapted to safely transfer units of value across the globe, blockchain technology, underlying technology of Bitcoin, promises great future for global money transfer business.
In the money transfer domain, Ripple is the most appropriate enterprise trying to grab a major market share through its On-Demand Liquidity platform and native currency XRP, which is used by topline companies such as MoneyGram since August 2019.
MoneyGram CEO Alex Holmes, speaking at Ripple’s Swell conference, revealed that 10% of remittance carried out between the US and Mexico, via his company, happens through On-Demand Liquidity.
Ripple’s website provides more detail about the aforementioned 10% claimed by MoneyGram. Holmes gave the following explanation:
“The 10% relates to the ODL (On Demand Liquidity) platform and represents the percent of our Mexican peso volume that we trade. We take USD and buy Mexican pesos. We continue to work with Ripple to build liquidity. We now have four new corridors we are starting, including the Philippine peso and Australian dollar. True success will be determined by others joining the platform, so it’s early days.”
Holmes highlighted blockchain technology’s potential to simplify payment transfer to new countries. However, he did not disclose the size of MoneyGram’s US-Mexico business.
