Travelex currency services partner with Ripple
After the launch of RippleNet's On-Demand Liquidity (ODL) with foreign exchange provider Travelex, Ripple's XRP token will be used to facilitate fast and low-cost cross-border transactions in Brazil.
On 18 August 2022, Ripple announced that the foreign exchange company Travelex currency services would use RippleNet's ODL to facilitate XRP-based cross-border payments between businesses.
Furthermore, Travelex Bank was cited as the first Brazilian financial institution authorized to deal solely in foreign exchange by the country's Apex bank. Ripple claims this is the first time a Latin American bank has used ODL.
However, other Latin American businesses like Banco Rendimento, Remessa Online, Frente Corretora, and Banco Topazio have used RippleNet services. For now, Travelex will only facilitate these payments between Brazil and Mexico.
Still, the company has plans to expand into other countries in the region and develop additional use cases tailored to the requirements of businesses.
Travelex currency services and Ripple targeting the Brazilian market
News of the development follows the April 2022 passage of Brazil's first "Bitcoin law," which sought to establish a regulatory framework for treating virtual currencies. The Brazilian central bank is also launching a digital currency (CBDC).
However, economist Fabio Araujo believes that the CBDC "will be able to halt bank runs and impose other restrictions on citizens' access to money," even though this decision has been met with much opposition.
Brazil's adoption of a crypto-friendly regulatory framework and rising institutional interest in digital asset solutions make it a great fit for the ODL, according to Ripple CEO Brad Garlinghouse. Ripple sees Brazil as a crucial market because of the country's strategic location as a hub for Latin American trade, its tolerance of cryptocurrencies, and the government's efforts to foster the development of the fintech industry on a national scale.
For this reason, there has been a flurry of activity in the market as institutions rush to adopt crypto and blockchain technology to address customer concerns.
Travelex currency services adoption of the ODL service will greatly improve the efficacy of cross-border payments, which currently total over $780 billion per year and are directed to Brazil, according to Garlinghouse.
We've always emphasized creating solutions that have real-world value. We're thrilled to work with a forward-thinking partner like Travelex Bank to facilitate faster and more secure money transfers in Brazil.
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