Blockchain

Ripple's Remittance service cuts cost, increases speed: An Interview

U.S. BankDigital Product Leader

Post one of the recent conferences we got an opportunity to know more about Ripple and how they plan to disrupt the remittance market. Ripple protocol is solving a very important problem of the billion dollar remittance industry.  Some quick Q&A with Patrick Griffin, EVP of Business Development at Ripple Labs gave us insights into Ripple. 

Considering you are one of the Bitcoiners & in P2P industry tell us some basics about how it all started

Bitcoin cracked the door on the potential for a decentralized payments network and virtual currency. Ripple pushes that same door wide open. We designed a system that uses a consensus process to clear transactions in seconds and that can support any currency – not just one. The result is the Ripple protocol, an instant and no fee way to send any amount of money in any currency anywhere in the world.

What kind of legal challenges you faced to start a bitcoin p2p virtual currency exchange platform?Does the company need to have any licenses like money movement form each states?

The Ripple protocol is the pipes on which financial institutions, companies and individuals can move money. Ripple is not a money transmitter and does not require licenses on its own. However, gateways that operate on top of Ripple do need to meet all current regulatory and compliance thresholds. Ripple was designed with this in mind and includes features that enable gateways to meet these standards.

Ripple for individual how does it help consumers? How do I get money on Ripple Account Wallet ? So how can I send money from US to China via your platform?

Ripple makes it easy to send money anywhere in the world, in any currency – instantly and for free. It is perfectly suited to support merchant payments, wire transfers and remittances. The goal is to connect the world of money much like email does for communication. The result will be faster, cheaper and far-reaching applications for everyone – regardless of where they live or even if they have a bank account.

Users simply need to load money to an active Ripple wallet through a participating gateway. For example, someone could link his/her bank account to US gateway SnapSwap to fund his/her Ripple wallet. Then he/she can send it in any currency he/she desires to a Ripple user based in China who could accept payment in a completely different currency through a transaction that happens in less than five seconds and costs only a minimal fee. That user can then transfer funds to their own local gateway like RippleCN or Ripple China to access the money outside of Ripple.

When you say Ripple Exchange does it mean you have different rates of conversion for different currencies to Bitcoin? Are you simply a bitcoin p2p company or support other regular remittance transactions? Example US Dollar to Yen

Ripple is a protocol that governs the movement of money. Ripple supports an embedded multi-currency exchange that accommodates any currency – bitcoin, yen, euros, dollars, ripples, etc. - and can even power transactions that begin in one currency and end in another. This is accomplished through a system of market makers that allow for exchanges at current market rates. Ripple does not charge a fee on these exchanges.

Tell us more about Ripple Business, Is Ripple Gateway something which businesses can use it to integrate it with ecommerce sites or provide other example: So can we say Ripple is bitcoin enabler?

Ripple is definitely a bitcoin enabler. As a multi-currency exchange, Ripple enables any type of currency.

Gateways are any business that wants to serve as a cash-in/cash-out facility on top of Ripple. Because Ripple is an open source system, anyone can build a gateway.

When you say Ripple Network I understand it something like Bitcoin network too? or is it like PayPal money is moved within the network?

Ripple has its roots in the bitcoin way of moving money, but it features key advantages and improvements in that it does not rely on mining to confirm transactions. Instead, its consensus system allows transactions to clear in less than five seconds. And because it can support any currency and federates all payment networks – including PayPal – it has a much broader vision.

How do you make money? Is it on the float on you have on the network?

Ripple is the code, not the company. Ripple does not charge any fees or generate any revenue. It is free for anyone to build upon, and available for use by other financial services as a supporting infrastructure.

Ripple Labs is the company that designed Ripple. Ripple Labs is holding a percentage of all ripples (XRP) in existence as its business model.

Aalok Jariwala

U.S. BankDigital Product Leader

Aalok Jariwala - Product Manager, Mobile Payments/Offers/Banking, , Aalok brings with him entrepreneurial aspiration & acumen with his extensive experience in area of Mobile Banking, Payments & Offers (branchless banking in emerging countries). Currently, Aalok holds product manager position at U.S.Bank. Prior to U.S. Bank, Aalok worked as Director of Product & Sols at SourceTrace Systems for branchless mobile banking/payments solutions heading south east Asia products. Aalok hold™s Master of Science degree in Computer Science from San Jose State University, a post-graduate degree in Computer Engineering, a diploma in Business Management and a diploma in Mechanical Engineering.

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