Publicly listed commercial bank, Federal Bank Limited, recently announced a new partnership with Ripple. Federal Bank will use Ripple’s proprietary RippleNet technology to facilitate cross-border remittances. The same has been listed on the official website of the Bombay Stock Exchange.
It is worth noting that the bank is using RippleNet, and not its native cryptocurrency XRP. Federal Bank aims to use Ripple’s technology to facilitate fast, cheap and secure cross-border payments. Indians spent close to $2.3 billion in remittance fee in 2018 and blockchain-based solutions can significantly improve the space. Ripple had also tied up with IndusInd Bank to test blockchain solutions for global payments.
While it is good to see publicly listed companies partnering with international blockchain businesses, the government’s conservative stance on cryptocurrencies is stopping fintech businesses from embracing the full scale of benefits associated with this technology. The government’s unclear regulatory policies have even led the shutdown of prominent cryptocurrency exchanges such as Zebpay and Coindelta.
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