Even as this has been a challenging week for altcoins, some of them still impress the cryptocurrency following. Ripple has announced that it is “definitely” going to be targeting China with its blockchain-based payments technology.
Jeremy Light is the Vice President for EU Strategic Accounts at Ripple. In his wide-ranging interview with CNBC, he shared this important future direction of XRP. The firm is focusing on targeting China with its highly prized distributed ledger technology. This game-changing fintech boosts the speed of across borders payment processing.
Light stressed the critical importance of China to them. Ripple has a history (compared to other cryptocurrency firms) in the Asian nation. The blockchain firm negotiated a deal earlier in the year. The partner firm was Hong Kong-headquartered LianLian International. This is a locally important financial services company that offers cross-border payment transactions. These go between China, Europe, and also the United States. What will be interesting to see is when Ripple’s blockchain tech gets deployed by LianLian.
Blockchain and Not Digital Assets Is the Future of Ripple’s Involvement In China
Blockchain is the other name for distributed ledger. This technology underlies Bitcoin and also altcoins. XRP’s technology is unlike Bitcoin’s, though. The transactions on the Ripple network become validated by independent servers in a network. Banks, traders, and also retailers own these. With BTC, the network is a group of miners who certify the blockchain transactions.
China Has Crushed the Digital Assets’ Trading Within the Country
Ripple will not be pushing its digital assets’ adoption as it moves to enter the Chinese market. Part of the reasoning behind this is that the central government has squeezed the cryptocurrency trading in the Asian behemoth. The Chinese banned all initial coin offerings (ICOs) only last year. These are fundraising events that sell new cryptocurrency tokens.
At present, Ripple counts over 100 financial institutions within its network. Among these are Italy’s UniCredit, Spain’s Santander, Great Britain’s Standard Chartered Bank, and Switzerland’s UBS. Ripple will have some way to go in penetrating the Chinese market. It will require more than the one Hong Kong client financial payments company to secure XRP ascendancy in China.