In a recent tweet, a pro-XRP software engineer shared a clip demonstrating how XRP facilitates cross-border payment with lower cost and increased efficiency.
🔗 RIPPLE | Cross-Border Payments
Settlements in seconds, not days.
— Ingrid 🇨🇵 🇺🇲 👁️🗨️ (@IBcroc) September 14, 2023
Bill Morgan, a pro-XRP lawyer, praised the video demonstration. In particular, he lauded the clip for showcasing XRP’s functionality as a bridge asset in cross-border payments rather than a security offering, as the US regulator alleged.
The attorney further expressed that only individuals with a narrow perspective could interpret XRP as an investment contract. He specifically cited the US Securities and Exchange Commission (SEC) as among the people with an obtuse perspective.
Excellent video demonstration of how the non-security asset XRP works in cross border payments. Only the most obtuse people in the world, namely the SEC, could think that is an investment contract. https://t.co/nKm67hzGOv
— bill morgan (@Belisarius2020) September 14, 2023
Meanwhile, the demo clip highlighted that the global payments market is estimated at over $130 trillion. It mentioned that while the market continuously expands, its infrastructure is outdated and suffers significant challenges.
It stated that these challenges include trapped capital, high fees imposed by intermediaries, sluggish settlement processes, incomplete transaction data, and frustrating failure rates. The clip also cited the existence of single-point security vulnerabilities.
Ripple Steps in with XRP Solution
However, it mentioned Ripple introduced a payment solution that leverages the XRP Ledger (XRPL) and the digital asset XRP to address the challenges of the global payment market.
XRP, characterized by its rapid transaction speed, minimal costs, high throughput, and carbon-neutral attributes, has been deemed the ideal crypto for facilitating payments.
The clip noted that Ripple’s payment solution employs XRP to bridge fiat currencies. The method eliminates the need for pre-funding accounts and enhances transparency.
Moreover, it stated that Ripple’s XRP-based solution offers cost-effective credit options that enable greater capital flexibility and swift expansion.
One of the key highlights of the network is its ability to provide access to premier receivers in key markets in under four weeks.
The statement read:
“When you are ready to scale to new corridors, our network provides you access to premier receivers in key markets that you can start transacting with as little as four weeks.”
How Ripple XRP Payment Works
Furthermore, the clip underscored the working principle of the Ripple payment work. The process involves requesting a fiat-to-fiat quote for pricing and foreign exchange, incorporating a pre-negotiated FX margin once the receiver approves.
Subsequently, the sender initiates payment instructions, debiting funds from a digital asset wallet funded by Ripple with XRP, and transfers these funds to the receiver in less than three seconds. Following predefined payment instructions, the receiver disburses the end beneficiary in fiat currency.
Ultimately, the sending institution receives an invoice the following business week concerning the transaction.