Uphold CEO, JP Thieriot spoke on Thinking Crypto about how the traditional financial system in the U.S. is lagging behind in terms of cross-border payments and how Ripple and XRP could change the scenario altogether.
Thieriot said that they are launching a new product “Earn and Borrow” and that the updates related to this will be coming out next week. He continued:
“… and then another common thing that I find sort of interesting is one around how slow it is for people to do an ACH transaction from their US bank account into uphold where you know very annoyingly it can take up to eight or nine days… and… it has to do with the deficiency of the US ACH system which is not nearly as efficient for instance as the European equivalent SEPA.”
Furthermore, Thieriot said that the XRP constituents who are familiar with these problems suggested Uphold use Ripple’s xRapid technology, which is better than traditional payment systems and provides a near instant settlement. Thieriot said that they have “contemplated” the use of xRapid for cross-border payments which is the nature and purpose of xRapid.
In addition, Thieriot said that the problem arose when it came to payment transfer within the U.S. using the ACH system. He continued:
“one could conceive of XRP being used in the same way it’s used in xRapid to fix an inefficiency with the legacy banking system that XRP could theoretically be used in a domestic context as well.”
The CEO added that they could use XRP in a domestic context as well, but that would require a deal between Uphold and Ripple to be inked which would provide Uphold the liquidity that would otherwise be provided in case of xRapid use for cross-border payments.
He also acknowledged how the XRP community, which is sometimes also an “XRP army” could help them do a deal with Ripple that would allow them to provide Uphold users instant transfers using the ACH system.
@XRPTrump aka Dr. T, one of the prominent members in the Twitter XRP/Ripple community tagged Welly, a Business Development Executive at Ripple and asked if he could share his thoughts.
Welly replied:
“Solving for delays for all of FedACH (which is practically ubiquitous in the US) is tough.
If Uphold is experiencing friction, I would start by trying to make it easier to move money to/from another wallet/network that also already supports XRP and USD.”
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Published at Wed, 16 Jan 2019 12:03:52 +0000