Ripple and Bitso have been working since 2018 to build and test a solution for the problem of slow and expensive cross border transfer.
RippleNet’s On-Demand Liquidity (ODL) service is the key to make the feat possible.
Bitso: Mexican Cryptocurrency exchange
Mexican based cryptocurrency exchange, Bitso
is a household name in Latin America that provides features like wallet and trade of cryptocurrencies. Bitso is committed to developing efficient financial services in Mexico.
Bitso believes that the blockchain technology will create a revolution in Latin America’s large underbanked population and digital assets could boost financial access in the country.
Bitso is having the world’s largest liquidity of Mexican pesos to digital assets and is partnering with MoneyGram’s Key exchange partner for remittances into Mexico.
Ripple and Bitso: Cheaper and faster
Ripple is a digital remittance network created to transfer funds and operates as an open-source peer-to-peer decentralized platform that records all the transactions in the network. It is proven that payment made by ripple is comparatively faster than any.
Ripple and Bitso have been working since 2018 to build and test a solution for the problem of slow and expensive cross border transfer from the United States to Mexico.
How it is possible?
It achieves it through RippleNet’s On-Demand Liquidity (ODL) service, The company first converts the US dollars into the digital asset XRP and then send that XRP through Bitso’s banking partners where it can be exchanged for Mexican Pesos.
The whole conversion is so fast that it all does in a minute and cheaper than the traditional wire transfer which costs more than five-time of Ripplenet’s ODL does.
This solution completely transforms how businesses manage their working capital but the most beneficial is the end-user who enjoys the experience of the faster and cheaper cross border experience.
Ripple and Bitso target the millions of migrant workers in the United States who send their money back to Mexico to their families. In traditional methods, the Mexicans must wait for weeks to get the hand of this remittance which could be easily beaten through Ripple’s ODL.
Bitso estimates the remittances market between the United States and Mexico is worth $35 billion a year by calculating the Mexican population of 11 million living in the US.