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Different cryptocurrencies are created for different purposes, and each aims either to solve a specific problem or improve the present way of doing things.
In the case of Ripple, their goal is to enable faster and cheaper transfer of money around the world, and for Filipinos here and abroad, this is very relevant.
With inbound remittances in the Philippines hitting around the $30 billion mark in 2018, you can’t deny how huge and entrenched sending money to our loved ones is in our lives today.
Unfortunately, sending money in this day and age can only still be done through banks and remittance centers. The ugly part? They charge pretty high fees to facilitate the transaction and take days to complete.
Say you’re an OFW working in the US and want to send $2000 to your wife and two children living in the Philippines. It’s exam season again, and your kids’ tuitions have to be ρáíd.
You go to your bank in the US to send the money to your wife in the Philippines. What you don’t see is that your money actually has to go through several transactions and sometimes even multiple banks before it will reach your wife’s bank.
And as you can imagine, each bank and remittance company involved in the transfer will take a cut. The result? It will take days for the money to hit your wife’s account and worse, she will not even receive the full amount you sent because of the fees.
Today, sending money home to the Philippines costs a whopping 8% on average. That means out of the $2000 that you sent your wife, $160 goes to the banks and only $1840 goes to your family.
This is what Ripple seeks to remedy.
By partnering with banks and financial institutions all around the world, Ripple is using blockchain-based technology and its native XRP cryptocurrency to enable money transfer beyond borders way faster and cheaper than what we have today.
Basically, Ripple eliminates all those cumbersome transactions and costs in between by streamlining the whole process to allow money to be transferred directly from point A to point B without any hassle.
At present, Ripple is partnering with a growing number of banks and payment centers across the globe.
As of writing, XRP has already jumped to the second spot right behind Bitcoin as one of the most valuable cryptocurrencies by market cap. As they partner with more and more financial institutions over time, you can rest easy that Ripple will only continue to make waves in the crypto space.
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