Ripple – The Blockchain Report

Ripple making a splash in Japan

Ripple, in conjuction with a consortium of 61 Japanese banks, will debut an app this fall in Japan that settles payments instantly. SBI Net Sumishin Bank, Suruga Bank and Resona Bank will test the new app first. If the test is successful, the app will be rolled out to the rest of the banks in the consortium. (CNBC)

Money Tap is the name of the new app.

Ripple said that the app would make it easier for banks to settle round-the-clock domestic payments in Japan. Consumers will require a bank account, phone number or a QR barcode to use the app, Ripple said. (CNBC)

Be smart: There’s a reason this launch is happening in Japan. Japan is adopting one of the most progressive approaches to blockchain technology and fintech. Japan is counting on fintech to be a major driver of its economy in the future and provides regulatory friendly environment to launch blockchain solutions.

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Bitcoin, cryptocurrency prices tumble again

A market selloff sent prices for bitcoin, ethereum and other cryptocurrencies tumbling Tuesday. Bitcoin was down 12 perecent and trading below $10,000 Tuesday afternoon, according to CoinDesk. Ethereum was down 9 percent while ripple fell 10 percent, according to CoinMarketCap. (CNBC)

Be smart: No one exactly knows what sparked the massive selloff. One possibility is South Korea implementing strict KYC rules for trading cryptocurrencies. (CNBC) Another is the SEC freezing the assets of AriseBank and halting its massive ($600 million so far) ICO. (CNBC) A third regulatory action saw the U.S. Commodity Futures Trading Commission send subpoenas to cryptocurrency exchanges Bitfinex and Tether. The subpoenas were issued in December, but reported publicly for the first time today. (Bloomberg Technology) It’s also entirely possible that this trifecta of bad news had nothing to do with the selloff. Nobody knows for sure.

What’s next: Volatility is the norm in cryptocurrency markets. So this wild ride will continue. Just remember the regulators are not going away either. The size and volatility of these markets have caught their attention. And there are going to be more regulatory actions in the future.

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MoneyGram to test Ripple’s XRP cryptocurrency

The quick read

The technical and financial infrastructure that supports cross-border payments is an absolute mess. That’s why banks and payment companies are looking for better, more efficient ways to process these transactions. Blockchain technology holds promise in this space, which is why MoneyGram has agreed to test out Ripple’s XRP cryptocurrency. (American Banker)

MoneyGram, the world’s second-largest cross-border payments company, is a big get for Ripple. Ripple has faced significant public scrutiny over the value of its XRP currency and the centralized nature of its coins. (TechCrunch)

The key details

International bank payments are slow and the associated fees often remain unknown until after a transaction has reached its final destination. MoneyGram, a major player in the $600-billion-a-year remittance market, is similarly afflicted. Enter Ripple. The San Francisco startup is offering on-demand liquidity and rapid foreign exchange through XRP, theoretically allowing financial institutions to send payments around the world without the need for multiple corresponding accounts. Fees would be lower and the payment flows more transparent. (American Banker)

The bottom line

This is a big get for Ripple after a wave of bad publicity and an ever bigger test for blockchain technology. The current cross-border payments system is extremely inefficient. If blockchain technology can solve this problem, it’s a huge win for the platform.

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