Ripple opted by Kuwait Bank for instant cross-border payments
Ripple Net, a blockchain based enterprise has collaborated with the Kuwait Finance House (KFH) to facilitate cross border payment. Earlier BCFocus has reported about the statement made by Ripple (XRP) CEO regarding the end of bitcoin's influence over cryptocurrencies.
KFH is the first Islamic bank of Kuwait to employ the “unique tool” of this technology. It assists in conducting international payments for the retail customer base. The bank has commented, “With this, KFH can provide instant and secure cross-border money transfers within seconds, with end-to-end visibility over the journey of the payment.”
Kuwait Bank's Initiative
The Kuwaiti bank made an announcement ratifying the initiative to unite with Ripple Net, a globally operated blockchain network. It provides assistance to a wide spectrum of banking institutions including payment providers, banks and financial institutions. These organisations to ensure real-time clearance utilise the product and settle the cross border transactions.
The bank, however, says the consent from Central Bank of Kuwait is required before releasing the service based on Ripple. KFH assures that customers would derive benefit from more efficient and faster payment mode. This service will be supplemented by transparency and security of transaction. Furthermore, it would be conducted at lower costs than the traditional cross border payment.
RAK Bank based in UAE also accepted the membership of Ripple Net in September, 2017. This bank is specialised for “instant, frictionless and secure money transfer services.” The service would be provided to the account holders of Axis Bank operating in India. Axis Bank also happens to be a member of Ripple Net.
Another prominent Middle East based organisation with forex firms is UAE Exchange which has come together with the blockchain technology. A partnership has also developed between Saudi Arabian Monetary Authority (SAMA) and Ripple to develop xCurrent. The SAMA has become the first among all the central banks to partner with the technology.
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