Ripple Unveils Credit Program for Commercial Payment Processors

Ripple Unveils Credit Program for Commercial Payment Processors
October 13, 2020

 

As Bitcoin (BTC) has remained above $11,000 for over a week, most of the major altcoins are trading in the positive. At the time of writing this article, Bitcoin was trading at $11,492.65, an increase of 0.9% in the past 24-hours. Ether (ETH) was trading at $385.03, up 2.8% in the same period. XRP has gained 0.4% to trade at $0.2559.

Major altcoins which have rallied in the past 24 hours include Monero (XMR-$130.69, 3.4%), OKB (OKB-$6.12, 0.4%), Litecoin (LTC-$50.32, 0.2%), Cardano (ADA-$0.1103, 3.1%), ChainLink (LINK-$11.36, 5.3%), Tron (TRX-$0.0271, 2.1%) and Huobi (HT-$4.73, 1.1%), Tezos (XTZ-$2.36, 4.7%), Binance Coin (BNB-$30.86, 5.9%). Major altcoins which have lost value in the past 24 hours are Cosmos (ATOM, $5.95, -1.0%), Dash (DASH-$71.78, -0.5%), Polkadot (DOT-$4.31, -0.1%), IOTA (IOTA-$0.2935, -0.9%), Bitcoin SV (BSV-$169.25, -1.4%), Bitcoin Cash (BCH-$239.22, -0.9%), Tether (USDT), EOS (EOS-$2.64, -0.5%), and Stellar (XLM-$0.0771, -0.9%).

 

Government level initiatives

BIS releases bulletin regarding central bank digital currencies

The Bank for International Settlements (BIS), in partnership with a consortium of seven central banks, released its foremost joint bulletin about central bank digital currencies, centered on the elementary principles and quintessence features of CBDCs. The BIS digital currency panel was established in January of this year, comprising central banks from the UK, Japan, Canada, Switzerland, Sweden, and the European Central Bank. Later, the US Fed also became a member of the group.

Along with the report, the Bank of Japan, a prominent member of the group, published a document underlining its precise strategy to CBDCs from a Japan centered point of view. As per the BoJ report, it will begin the first stage of the CBDC trial sometime this year. During the first stage, creating a trial environment for the CBDC and testing its preliminary functions as a mode of payment will be carried out.

The BoJ document indicates that a key characteristic of the digital currency will be robustness: “Offline use in times of system and network failures, as well as electrical outages, is also important for Japan, given the frequent occurrence of natural disasters.”

 

Shenzhen launching a trial to boost the use of the digital yuan

China’s city of Shenzhen is rolling out a trial program to encourage the adoption of digital yuan. Interestingly, the program involves a public giveaway of 10 million digital yuan (~$1.50 million), China’s government-backed digital currency.

Shenzhen’s Luohu District will back the giveaway trial program. The giveaway amount will be disbursed to 50,000 recipients via a lottery. Residents of Shenzhen can apply online to take part in the free award program.

Each individual chosen for the giveaway will receive 200 renminbi and can be spent between October 12th and October 18th at any of the 3,389 vendors in Shenzhen’s Luohu District. The digital yuan cannot be gifted to anyone else or deposited in personal bank accounts. After October the 18th, unspent money, if any, will be taken back. The country’s digital yuan venture, also referred to as the digital currency electronic payment (DCEP), was trialed in China in April of 2020. The trial is being carried out in nine cities, including Guangzhou, Shenzhen, and also Hong Kong and Macau.

 

Private sector initiatives

Billion joins forces with ERGO Hestia

Billon, a Distributed Ledger Technology (DLT) focused company, has joined hands with ERGO Hestia, the second-largest insurer in Poland, to offer its clients a blockchain service that facilitates instant repayment of excess premium payments. The technical advancement, made possible via tokenized Polish currency zlotys, has been utilized by a pre-determined group of ERGO’s clients since the start of September and will now be trialed with a broader clientele. Billon’s Distributed Digital Cash platform utilizes permissioned blockchain technology. The digital money adheres to the e-money rules of the EU.

The solution intends to address handling premium refunds, which can be incredibly complicated if the recipient’s bank account data had not been previously documented. Usually, when a car is sold, the client may have claims on a portion of the insurance policy premium. However, in general, banking details are not provided while buying an insurance policy, particularly in an offline transaction. With the non-availability of data, it is costly for an insurer to complete small repayments, which may involve several layers of communication.

The latest procedure, developed by Billon Solutions, a regulated subsidiary of Billon, reimburses funds in tokenized Polish zlotys. The entire process can be completed using ERGO Hestia’s automated payout platform without directly interacting with the payment receiver. An email address or mobile number is sufficient to notify the receiver about a reimbursement. A client should simply log on to ERGO Hestia’s portal to complete the process. Even bank account details can be input for collecting funds in their account.

 

Ripple unveils line of credit program

Ripple has launched a line of credit program for commercial payment processors. Under the plan, Ripple will offer working capital to purchase XRP for use on its On-Demand Liquidity (ODL) solutions. ODL is a RippleNet facility that uses XRP as an intermediate currency for carrying out cross-border payments. Payment processors are lured towards ODL because it minimizes the necessity to take the services of correspondent bank accounts. In fact, many of the banks using the RippleNet messaging platform do not use XRP or ODL.

As Ripple has enormous reserves of XRP, it is relatively easy for the company to offer such a service. To be exact, Ripple has 6.20 billion XRP (~$1.55 billion) in its coffers.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins


Related Articles

AXA XL Launches STO & Crowdfunding Insurance Service

  The cryptocurrency market remains range bound with a slight bearish bias. In the past 24 hours, most of the

Morgan Creek’s CEO Equates Bitcoin To Amazon Shares

  After undergoing a sharp correction, the cryptocurrency market has turned positive in the past 24 hours. Bitcoin (BTC) has

UAE, Saudi To Launch Crypto For Cross-border Transactions

  The cryptocurrency market has been showing signs of recovery in the past 24 hours. Bitcoin has gained about 2.5%