UAE Exchange signs deal with fintech Ripple for international payments

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The logo of blockchain company Ripple is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. Picture taken October 19, 2017.
The
logo of blockchain company Ripple is seen at the SIBOS banking
and financial conference in Toronto, Ontario, Canada October 19,
2017.


REUTERS/Chris
Helgren




  • UAE Exchange joining Ripple’s RippleNet network for
    cross-border payments.
  • The deal comes amid skepticism from some over recent
    rise of Ripple’s cryptocurrency XRP.
  • It’s not clear if UAE Exchange will use XRP in its
    processes.

LONDON — Foreign exchange giant UAE Exchange has signed a deal
with San Francisco fintech players Ripple on cross-border
payments.

UAE Exchange is joining the startup’s RippleNet network, which
uses blockchain technology to power real-time international
payments.

UAE Exchange CEO Promoth Manghat said in a statement:
“Incorporating Ripple’s blockchain technology into our payments
systems will bring customers an enhanced, new payments
experience.

“The early adoption of this game-changing technology allows us to
offer a competitive service, as it will have an impact on the
speed and cost of cross-border transactions.”


Qatar and UAE exchange office in Doha, Qatar, June 13, 2017.
Qatar
and UAE exchange office in Doha, Qatar, June 13,
2017.


REUTERS/Naseem
Zeitoon



Manghat described himself as “a big champion of Blockchain” in an
interview with Arabian Business last October and said:
“The average consumer may never know about blockchain, but
indirectly he will reap the benefits of the efficiencies it
brings forth across industries in his everyday life.”

UAE Exchange,
whose billionaire owner also owns Travelex
, claims to have a
6.75% share of the $575 billion global remittance market and is

aiming to increase that to 10% by 2020.
It has 800 branches
stretching over 3o countries.

The deal is a boost for Ripple, which has faced recent skepticism
in the press. The company’s cryptocurrency, XRP, rocketed to a
high of $3.65 before Christmas,
leading the New York Times to examine how many businesses were
actually using it.
(XRP has since fallen to around $0.85, as
of Friday.)

It is unclear whether UAE Exchange will actually use XRP in its
processes. The cryptocurrency is used by Ripple for offering
liquidity to institutions but not for international transfer.
This nuance is not always made clear.

Dilip Rao, global head of infrastructure innovation at Ripple,
said in a statement: “Adding a market leader like UAE Exchange to
RippleNet will bring instant, certain, low-cost payments to the
millions of retail customers in the UAE who send money abroad.”

Source