Early this morning, well-known pro-XRP attorney John Deaton urged that the Ripple blockchain contact banks or cash transmitters with a proposal to dramatically cut the costs they charge for international money transfers utilizing blockchain technology.
Money transfers made affordable with Ripple
According to reports, Deaton proposed in reaction to the announcement that the Ripple network has processed over $1 billion in four seconds while incurring just a $0.01 processing cost. According to reports, Deaton asked Ripple to contact money transmitters such as MoneyGram and Western Union with the following message: “You charge consumers 9-15% to transport money worldwide. We can do it for pennies on the dollar. Utilize our technology to avoid the hefty friction costs you’re accustomed to.”
Deaton stressed the importance of the XRP ecosystem while describing Ripple’s attempts to make the payment system more frictionless. Its ecosystem comprises many people, including investors, consumers, small companies, and developers, who have significantly contributed to Ripple’s growth. According to Deaton, this collaborative effort has driven Ripple’s attempts to transform the traditional payment system.
Imagine @Ripple going to a bank or money transmitter like @MoneyGram or @WesternUnion and saying: “I know that you charge 9-15% for people to send money internationally. We can do it for less than a penny. Use our tech and miss out on those high friction fees your used to.” https://t.co/G6N86vtgFW
— John E Deaton (@JohnEDeaton1) March 26, 2023
Legal challenges for payment disruptors
Due to legislative restrictions and community distrust, combining new payment technologies with old settlement systems may take much work. Ripple blockchain is an excellent illustration of this since it has been entangled in a protracted legal battle with the US Securities and Exchange Commission for many years. The regulator has charged Ripple with selling unregistered securities to the public and generating billions of dollars. Notwithstanding the current legal struggle, Ripple is committed to deploying blockchain technology to revolutionize the old payment system.
It is worth mentioning that Ripple’s payment system uses its utility token, XRP, as a bridge currency. This novel methodology allows the system to process transactions faster and more cheaply than standard payment systems. Moreover, Deaton noted that Ripple’s success is mainly due to the XRP community’s support and efforts. According to the lawyer, the community’s passion and commitment have been necessary for Ripple’s development and continuing success.