There is a chance that the pilot project will not see Moneygram adopting the cryptocurrency WXRP, but the two parties will evaluate whether or not the company becomes one of Ripple's payment partners. XRP remains the most efficient digital asset for payments with transaction fees at just fractions of a penny, compared to Bitcoin fees of about $30 per transaction.
XRP is fast too. "By using a digital asset like XRP that settles in three seconds or less, they can now move money as quickly as information".
About Ripple Ripple provides one frictionless experience to send money globally using the power of blockchain.
"Ripple is at the forefront of blockchain technology", Alex Holmes, CEO of MoneyGram, said in the statement.
"The Japan Bank Consortium's pilot with Woori Bank and Shinhan Bank brings us closer to sending money in an important corridor", said Emi Yoshikawa, director of partnerships at Ripple.
According to a press release, MoneyGram will test Ripple's xRapid service due to its claimed speed and cost efficiency. The two banks use the blockchain to speed up cross-border payments between the United Kingdom and the US.
Enter Ripple. The San Francisco startup is offering on-demand liquidity and rapid foreign exchange through XRP, theoretically allowing financial institutions to send payments around the world without the need for multiple corresponding accounts. Dragging it down were concerns that it was overbought and criticism of Ripple's centralized business model, which stands in stark contrast to the decentralization that is key to bitcoin, Ethereum and many other digital currencies.
About MoneyGram MoneyGram is a global provider of innovative money transfer and payment services and is recognized worldwide as a financial connection to friends and family. That makes the process for payments costly and slow.