Ripple Managing Director is optimistic about the transformative power of blockchain in cross-border payments; highlights pain points and solutions.
Aaron Sears, Ripple’s Managing Director of the Americas, is optimistic about the transformative power of blockchain and digital asset technology in the financial services industry, particularly in cross-border payments.
In an interview with PYMNTS, Sears highlighted the pain points of traditional global payments, including speed, reliability, transparency, and cost issues. However, Sears believes digital assets and blockchain can address these challenges and streamline cross-border payments.
.@Ripple on how blockchain and digital assets can free up capital trapped in cross-border treasury flows. Click over to PYMNTS for the rest of our sit-down w/ Aaron Sears: https://t.co/Absjw9lmn7 #Ripple #XRP pic.twitter.com/cGe51hPAzB
— PYMNTS (@pymnts) June 9, 2023
Legacy Solution Can Be Frustrating
Sears explained that the current correspondent banking system is fragmented and inefficient, leading to slow, unreliable, and expensive cross-border payments. These inefficiencies significantly impact finance leaders’ decision-making.
Furthermore, Sears emphasized the burden of pre-funded accounts and the complexities of traditional cross-border payments, such as wire cutoff times, holidays, and banking hours. He suggested that businesses adopt a robust, compliant, and secure all-in-one cross-border payments solution to overcome these challenges.
Blockchain and crypto-enabled payments offer real-time settlement and payout, facilitating instant value transfer. The Ripple American managing director highlighted the 24/7/365 availability of cross-border payments powered by blockchain and crypto.
“We’ve seen increasing clarity in many different markets around the world on the regulatory front. In lockstep with that, we’ve seen institutional adoption [of crypto] go way up, which will embolden additional waves of institutional customers,” he concluded.
Ripple Solution in Mexican-US Market
In a related development around cross-border payment, a key partner of Ripple’s on-demand liquidity service processed a staggering $3.3 billion in 2022, as reported by The Crypto Basic. Some of this volume was facilitated using ODL.
Specifically, Bitso, a Mexican crypto exchange, facilitated $3.3 billion in remittances between the United States and Mexico throughout 2022. Notably, the figure more than doubled what was obtainable in the previous year.
Commenting on the accomplishment, the Ripple Managing Director of the Americas emphasized the significance of Ripple’s collaboration with Bitso in revolutionizing cross-border payments in Mexico, a crucial region for Ripple’s clients.