Remember when Ripple was adopted by over 60 Japanese banking institutions? This was big news for the blockchain based payment tech initiative as it took a step forward in acceptance by mainstream financial institutions. Now there are interests in Hong Kong and China, according to CNBC, that are either interested in, or are targets for Ripple. In short, according to this article, Ripple “definitely” wants to target China with its technology.
The distributed ledger technology designed to speed-up cross border payments might be what the Chinese market needs. Earlier this year, Ripple signed a deal with Hong Kong-based financial services firm, LianLian International, aimed at this Hong Kong firm`s cross-border transactions between China, the US and Europe. It is not clear is the technology is being implemented in the future or is already in use. This technology allows transactions across multiple locations – rather than one central server. Hence it is distributed.
These transactions would be validated and confirmed by a network of independent servers that are located in banks, retailers and traders. This is somewhat different than “miners” that validate transactions on Bitcoins public blockchain network. This system by Ripple seems to be catching on as its technology is now being used by 100 financial institutions including Santander, UniCredit, UBS, and Standard Chartered. Of course, to break into China, Ripple would be in direct competition with a range of Chinese technology firms.
Note that the App called Money Tap in Japan is, as mentioned above, a group of over 60 Japanese financial institutions. Ripple has seen its value decrease by 90 percent over the past 6 months, as there are some who doubt that Ripple is the right choice. Some fear that the volatility of cryptocurrencies would inhibit Ripple`s XRP from seeing mainstream adoption with banks and other financial institutions.
More on Ripple in the coming weeks.