- The CTO of Ripple talks about Bitso and how they’re improving financial transactions.
- By working together, Bitso facilitates billions in XRP remittances.
- It does so without having its operation in the US.
Bitso, the Mexican-based cryptocurrency exchange, gets the spotlight from Ripple CTO David Schwartz. Specifically, the recognition is for its remarkable ability to facilitate billions of dollars in XRP remittances between Mexico and the United States, despite not having a physical presence in the US.
During a recent discussion with the XRP community, Schwartz explained that Bitso acts as an intermediary by converting received XRP into Mexican Pesos (MXN) and facilitating domestic payments to recipients in Mexico. He emphasized that users in the United States simply need to send XRP to Bitso, which then handles the necessary conversions and sends MXN to the intended recipients.
Schwartz attributed Bitso’s success in enabling cross-border transfers between the two countries, particularly with Ripple’s product, to its proficiency in converting XRP to MXN and managing the final fund distribution. He clarified that within Ripple’s On-Demand Liquidity (ODL) framework, Bitso is solely responsible for currency conversion and delivery, without any involvement in the originating currency.
Regarding the possibility of opening a Bitso account in the United States for XRP transactions, Schwartz clarified that individuals in the US do not need Bitso accounts. Instead, recipients in Mexico can open Bitso accounts, and anyone with XRP can send payments to them from anywhere globally. Schwartz explained that XRP transfers value to Bitso during this transmission process.
The ability of Bitso to handle billions of XRP remittances without operating in the US marks a significant advancement in the cross-border payments industry. By leveraging cryptocurrencies like XRP, traditional cross-border payments, which are often slow, costly, and opaque, can be accelerated and cost-reduced.
The Ripple network, specifically designed for international payments, offers speed, efficiency, security, and high transaction capacity. Consequently, it serves as an excellent platform for conducting XRP remittances. As the use of cryptocurrencies continues to grow, further innovation in cross-border payments can be expected. Embracing XRP and other digital currencies has the potential to make cross-border transactions faster, cheaper, and more efficient, benefiting both businesses and individuals relying on such payments.
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