Several spheres of the financial world are now facilitated using a multitude of advanced blockchain technology and this has led to greater public exposure and use of crypto-currencies.
Ripple and Stellar are at the forefront of the crypto-fintech partnership in the sphere of cross-border transactions. They are specialized to provide solutions to companies in the banking and payment sector. The objective may be the same, but the means certainly differ, Stellar operates on a decentralized platform whereas Ripple prefers a centralized approach.
Tempo Money Transfer is currently reaping the benefits of the blockchain in their transfer system and has decided to use the services of Stellar over Ripple. Anthony Barker, the company’s Chief Technology Officer said, in an interview for the Blockchain Podcast #66 of Finance Magnates that Stellar’s open design makes it a “natural fit” for the company:
“Stellar was sort of a natural fit for us…My gut reaction was that “Ripple” is not so good for community building…[It’s] much more like a Visa/MasterCard… I have a strong belief that open systems win in the long run”
Anthony Baker mentioned the ability of the Stellar blockchain to create a Token allowing Tempo to make its system all the more fast, reliable and secure from a payment standpoint:
“We worked with Jed McCaleb and his developers, and we added compliance, so it’s integrated into Stellar as a standard 2nd-layer protocol… so we know how to send first name, last name, and date of birth across.
They added that really quickly simply because they’re really focused on this global remittance use case,”
Citing instantaneous transactions, regardless of quantity, as the prime advantage that a digital currency based system has over the traditional fiat-based system. Commenting on the fiat bases system, he said:
“That’s why we migrated to blockchain… It’s (fiat system) really expensive, it’s a nightmare [with correspondent banks]; money gets locked up, and there’s no idea where it is or where it’s been blocked.”