According to the San Francisco Company, Saudi Arabian Monetary Authority (SAMA) has signed an agreement with Ripple so as to create a pilot program to enable local banks to deploy xCurrent for cross-border payments.
This pilot program will provide interested Saudi banks with program management and training and it is also the first of its kind to be launched by a central bank.
Ripple was created by the Ripple company as a real time gross settlement system (RTGS), exchange of currency and transfer network. It is also called Ripple protocol or the Ripple Transaction Protocol (RTXP). Ripple is constructed upon a disseminated open source Internet procedure, consensus ledger and built-in crypto currency called XRP.
Ripple was released in 2012 and purports to enable safe, instant and almost free global financial transactions of any size without any charges.
The global head of infrastructure innovation at Ripple, Dilip Rao said that central banks around the globe are leaning on blockchain technology in recognition of how it can transform cross border payments, which results in lower barriers to trade and commerce for both corporations and consumers.
He went on to say that the Saudi Arabian Monetary Authority (SAMA) is leading the charge as the first central bank to provide resources to domestic banks that want to enable instant payments using Ripple’s innovative blockchain solution.
Saudi Arabian Monetary Authority’s use of xCurrent has the potential to revolutionize how banks in the KSA send money globally, helping customers experience cheaper, faster and more transparent cross-border transactions.
Ripple supports tokens representing fiat currency, commodity, crypto currency or any other unit of value for instance frequent flier miles or mobile minutes. Ripple’s core base is around a public or shared database or ledger, which uses a consensus process that allows for exchange, remittance and payments in a distributed process.
Internet service providers, financial companies and the Massachusetts Institute of Technology are among those that validated Ripple.
Ripple is used today by companies such as UBS, Santander and UniCredit, and has been gradually adopted by banks and payment networks as settlement infrastructure technology. Its XRP is the 3rd largest coin by market capitalization as of 26th January, 2018.
Following the Bank of England’s successful testing back in 2017, the adoption of xCurrent by SAMA makes it the second central bank on the globe to use blockchain technology to revolutionize payments.
Ripple is now used by more than 100 financial institutions around the world to power end to end tracking and instant settlements for their payments around the world.