Good news for US startup Ripple Labs. Saudi Arabian Central Bank wants to test its payment solution xCurrent as part of a pilot project. The aim of the test series is to enable as many guest workers as possible and inexpensive transfers to their home countries.
Saudi Arabian Monetary Authority (SAMA) is the Central Bank of Saudi Arabia. Ripple announced on Wednesday that they entered into a cooperation with SAMA. Due to the many guest workers who send their wages to their families in their home country each month, Saudi Arabia is an interesting market for alternative payment systems. Central Bank will test Ripple’s xCurrent payment technology in a pilot program. The goal is to make international transactions faster, cheaper and as transparent as possible.
Saudi Arabian royal family is primarily concerned with the use of the Ripple money system, not the cryptocurrency XRP name. In its final form, online financial system should be a decentralized peer-to-peer payment system as well as marketplace for various fiat currencies, such as Euro, US Dollar and much more. In principle, Banks’ trust system is transferred to a digital level. Just as bank trusts that really pays you 100 Euros, Ripple has a digital register with all its account balances managed decentrally.
xCurrent establishes direct link to and between banks. Even before the transactions have been completed, they can be validated in advance and the respective costs can be calculated. Company Ripple Labs coordinates the transactions between banks and confirms them with cryptographic signatures. Further information can be found, for example, in this provider’s English-language video.
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