Rippler Partners With Travelex To Launch Payment Service In BrazilAugust 20, 2022 12:11 pm
Ripple just announced that the popular foreign exchange company Travelex will now also be using Ripple’s On-Demand Liquidity service.
The ODL service essentially allows for cross border transactions to be done almost instantly and at an extremely low cost.
Compared to the normal process which takes 3 to 5 business days, Ripple’s solution is clearly the preferred choice among all enterprises.
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Travelex Bank is also the first bank in Brazil that was authorized by the central bank of Brazil to operate exclusively with foreign exchange so this partnership with Ripple is a significant milestone for both.
.@Ripple unveiled its crypto on-demand liquidity service in Brazil in partnership with Travelex, which will be the first bank in Latin America to use the product. @RodrigoTolotti reportshttps://t.co/OGnaeTWTcV
— CoinDesk (@CoinDesk) August 18, 2022
While other Latin American companies such as Banco Rendimento, Remessa Online, Frente Corretora and Banco Topazio have already used RippleNet services, the Central Bank of Brazil’s approval makes this the first time a Latin American bank has utilized ODL, said Ripple.
Travelex will firstly enable these cross-border payments between Brazil and Mexico, with plans to open up more payment avenues in the region and with more use cases suited to enterprise needs.
The news comes as the Brazilian government approved their first “Bitcoin law” in April 2022, which set out to create a regulatory framework as to how cryptocurrencies would be regulated.
Brazil is also in the process of rolling out a central bank digital currency (CBDC). However, the decision has been a controversial one, with Economist Fabio Araujo of the opinion that the CBDC “will be able to halt bank runs and impose other restrictions on citizens’ access to money.”
Ripple CEO Brad Garlinghouse also commented on the new partnership and stated that Brazil’s crypto-friendly regulatory environment was one of the things that made this possible.
It is known as a key market within South America and successful adoption of Ripple’s blockchain services in this country will likely lead to more adoption in the rest of the Latin America region.
Garlinghouse shared that there was already around $780 billion in payments that went to Brazil annually and that the use of Ripple’s ODL service in Travelex could potentially transform the entire market.
Both the banks as well as the customers themselves would be able to feel the benefits immediately with cost savings and reduced waiting time.
Ripple met with CB of Brazil in 2020.
Today, huge news for $XRP and the FX Market (Trillions Per Day)
— Kevin Cage (@Kevin_Cage_) August 18, 2022
Travelex, which is particularly active in the travel space, joins the ranks of Ripple customers and partners in the region. However, the recent partnership is particularly noteworthy as Travelex is the first bank approved by the Central Bank of Brazil to operate exclusively in foreign exchange.
The move comes as Ripple continues to consider alternative locations for its business amid ongoing regulatory woes in the US over its cryptocurrency.
Ripple CEO said last year that the company is considering a move away from its home base in San Francisco amid regulatory quagmire around its XRP token. However, there is no indication yet from the $10 billion fintech company that such a move is going ahead soon.
Ripple is yet to decide where to pick up its new mother base, but the firm has already set up a regional headquarter in Dubai.
Ripple, Brazil’s Travelex Bank Add Crypto-Based X-Border Paymentshttps://t.co/T5G4JqGpbF
— GiantGox (@GiantGox) August 18, 2022
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