Home Cryptocurrency SBI and Japan’s leading bank chooses Ripple for assisting cross-border remittances.

SBI and Japan’s leading bank chooses Ripple for assisting cross-border remittances.

by Serge Shlykov

Ripple, a real-time gross settlement system payment system, recently submitted a proposal to the Bank of Japan for a pilot program to help financial institutions make better use of Ripple’s blockchain technology.

Since the creation of the U.S. Federal Reserve Bank in 1913, the U.S. Federal Reserve System has been the primary institution responsible for managing the U.S. economy. Through the creation of the Federal Reserve System, the Federal Reserve was able to introduce the concept of an interest-free money supply, which was later used by Germany’s Reichsbank and Japan’s Bank of Japan. The Federal Reserve is the biggest and most trusted central bank in the United States, and it can provide money quickly to banks at the request of their customers.

Following its transactions with Saudi Arabia’s Public Investment Fund (PIF), American Express (NYSE:AXP) has signed a memorandum of understanding (MoU) with Japan’s leading bank, Sumitomo Mitsui Financial Group (NYSE:SMFG) to use RippleNet for cross-border remittance services. The MoU was signed in the presence of Ripple executive chairman, Chris Larsen, and SMFG’s president, Shinzo Kagami, during a meeting between Larsen and Kagami at SBI Ripple Asia’s headquarters in Tokyo, Japan.

Due to the increasing mobility of workers and other relevant factors, society increasingly needs a fast, secure and cost-effective payment infrastructure. Due to its aging population, Japan is one of the leading countries in terms of hiring workers from around the world.

According to this data, Japan currently employs 1.72 million foreign workers. Their number has increased dramatically in the past five years: in 2015, there were 0.9 million workers in Japan, and their number has almost doubled since then.

As a result of the above scenario, the country’s need for an efficient cross-border payment network is quite clear.

 

SBI Group, foreign currency transfers and Ripple

The Japanese SBI group has recognised this opportunity and is making extensive use of the market. Since 2016, there has been a partnership with one of the world’s largest providers of cross-border payment networks, RippleNet.

RippleNet, a subsidiary of Ripple Labs, is helping SBI Remit [a subsidiary of SBI] set up a low-cost, hassle-free money transfer network in the country.

SBI cooperates with Hamamatsu Iwata Bank

More recently, SBI has partnered with Hamamatsu Iwata Bank, one of Japan’s largest bakeries, to build a nationwide money transfer network [based on the RippleNet ODL].

The purpose of this partnership is to provide Hamamatsu Iwata Bank with appropriate technical support in building its own remittance network, SBI said in a press release:

Our mission is to provide remittance-based financial services to foreign residents, and we use Ripple’s distributed ledger technology, which allows for fast deposits and low fees.

Ripple in Japan:

In recent years, Ripple has become a major player in the Japanese money transfer market. At the time, Ripple CEO Brad Garlinghouse said that Japan was one of the fastest growing markets because of Ripple’s partnership with SBI, and that they were targeting Japan as the next location, given the unfavorable conditions for the company in the United States.According to Ripple (XRP), the world’s 2nd most valuable cryptocurrency, by 2019 over 80% of banks will be using Ripple’s xRapid to send money overseas. Without an XRP/Ripple ETF, the choices are limited to BTC or USD. This is why during the Davos World Economic Forum 2018, the SBI Ripple Asia consortium was announced. It is a collaborative initiative between 4 countries and 8 banks that facilitates the real time settlement of cross-border payments using Ripple’s xRapid for both domestic and international payments. The consortium aims to use xRapid to help people transfer money in a fast, cheap, and efficient manner.. Read more about sbi holdings crypto and let us know what you think.

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