Alex Holmes, CEO of MoneyGram, a major money transfer company, praised XRP after using its cross border payment platform xRapid.
In one of his latest interviews, Holmes was exuberant, while sharing his experience about the use of digital asset XRP. The praise comes after the series of steps taken by both firms, which mutually benefited them to expand their businesses.
Key Points of Collaboration Between MoneyGram and Ripple:
- The strategic partnership between MoneyGram and Ripple happened in June 2019.
- Ripple backed MoneyGram by purchasing its $50 million worth of shares with 10 percent stakes in MoneyGram. In return, MoneyGram partnered with Ripple to resolve digital cross border payments settlements.
What Ripple offered to MoneyGram?
XRP based two main products, xCurrent and xRapid are being utilized for faster settlement of payments. Transfers via xRapid reduce cross border operating cost and can transfer instantly.
MoneyGram has been carrying out cross border transactions via xRapid platform from last few weeks. Holmes seems impressed with its easy and rapid functionality.
Alex Holmes stated,
Ripple has large distribution blockchain technology and an interesting crypto coin like XRP can cross borders in seconds. What they don’t have is pools of global liquidity in fiat currency.
We, however, have pools of money across the world and our speed is only enabled by the ability to pre-fund and move money in advance. One system is really fast but lacks liquidity; the other has massive amounts of liquidity but is inherently slow.
Holmes remarked that cryptocurrency could surface as a crucial threat to the central banks and governments. He said,
If cryptocurrency can translate into fiat currency, it can be disruptive to cash markets. Most governments understand that, but most governments fear that too.
MoneyGram disclosed publicly that it has utilized XRP based cross border payment transactions service successfully, but has been vocal about using the xRapid for settlement transactions.