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Banks In Latin America Could Embrace Ripple’s xCurrent Services

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wallet full of cash near a ripple phisycal coin and some 100 dollar bills

There are several banks in Latin America that are apparently going to be adopting Ripple’s cross-border payments service xCurrent. This is according to the financial news agency iupana that released the information on June 17. The financial institutions involved include Banesco Panamá and Scotiabank Chile.

Banks in Latin America Could Work With Ripple’s xCurrent

There are banks in Latin America that are analysing the possibility to test Ripple’s xCurrent product. At the moment, these banks are testing blockchain technology through different proof of concept to improve their international payments offerings.

Banesco Panamá is one of the banks that is working with regulators in order to be compliant with local regulations. The company aims at rolling out the technology between banks in the region, including countries such as the Dominican Republic, Panama, Portugal, Puerto Rico, Spain and Venezuela.

Banesco is currently working with a proof of concept that used the xCurrent network developed by Ripple. With it, the financial institution transferred funds among different entities. However, using XRP is yet a step further than what they are comfortable with. This means that it might require some more time for the bank to use XRP for dealing with international payments.

“Once integrated into the Ripple network, Banesco aims to initially offer blockchain-based transfers only between banks in the group,” the article says. “That’s because Banesco needs to strike a deal on rates and exchange rates bilaterally with each recipient bank.”

Furthermore, Scotiabank Chile is also testing cross-border payments with Ripple. The VP of Digital bank at the entity, Daniel Kennedy, believes that Ripple’s payment network works “really well.” He believes that Lima, Peru is a potential place for customers to send funds.

On the matter, Kennedy commented:

“As soon as you do that, the process becomes a lot more efficient, a lot more effective. And you can start having almost one account. If you’ve got a small business in Chile with clients in Lima, they can deposit into an account that has the same number and it just gets transferred. But we’re not there yet.”

In addition to it, Ripple says that there are more than 200 banks and other financial institutions that signed up for the global payment network RippleNet. This is very positive for the company that is trying to compete against different firms and companies such as SWIFT.

Brad Garlinghouse, the CEO of Ripple, mentioned that they are also attracting new clients after the launch of the new Facebook Libra project.

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