The World Bank praises Ripple, says tech could transform remittances

31 Mar, 2019 | Updated: 31 Mar, 2019
by Will Heasman
The World Bank praises Ripple, says tech could transform remittances

Ripple and its cross border payments technology has been heavily praised in a rather bullish post by a prominent member of the world bank…

Marco Nicoli the World Banks' senior financial sector specialist has called out traditional cross border payments services, such as SWIFT, one of Ripple’s biggest competitors as “slow and opaque,” in a report about the transformative nature of digital ledger technology: 

“These shortcomings make the cross-border payment industry ripe for disruption and innovation. Some see distributed ledger technologies (DLT) as having the potential to drive industry-wide change. Indeed, B2B cross-border payments, traditionally characterized by fragmentation and opacity, are a potential use case for the successful implementation of DLT”

Nicoli also points to the dramatic benefits of using DLT:

“Using DLT solutions could also bring down compliance costs and improve the transparency and traceability of transfers. This could help ease the impact of the de-risking phenomenon that has affected the remittance services industry over the past few years.” 

He goes on to further explain that addressing the issue of transparency will increase the confidence of the banking sector in the remittances industry, and even potential negates the need for banks altogether.

The report cites Ripple technology imparticular, more specifically Ripples xRapid remittances solution:

“In 2018, Ripple, a fintech company, piloted xRapid, a DLT-based cross-border payments solution, along the very competitive U.S.-Mexico corridor. Financial institutions involved in the pilot saved 40%-70% in foreign exchange costs, and the average payment times was just over two minutes. The transfer of funds on xRapid took two to three seconds, with most of the processing time explained by domestic payment rails and intermediary digital asset exchanges.”

The post concludes with the fairly ambiguous question of whether or not DLT will be able to effectively solve the issues plaguing the remittances industry and whether “the technology will reach sufficient scale to effectively disrupt this space.” Ultimately the post settles on the fact that there is “ample opportunity – and of course need – for innovation in the cross-border payment industry.”

This is an especially positive take on DLT and Ripple tech from one of the most prominent financial institutions in the world. furthermore, an endorsement on Ripple’s remittances solution is indicative of the rising momentum of crypto assets their underlying technology as well as their various use cases and solutions.


Read more: Ripple creates new partnership with Federal Bank of India

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