Ripple to make a breakthrough in the Chinese market this year
March 22, 2018 12:29 pm
Creators very confident of introducing Ripple in the Chinese market
Ripple is ready to make a breakthrough in the Chinese market by the end of this year after the creators declared that it is “very confident” that the payment solutions which are blockchain-based will have some traction, has been reported.
The company is in casual talks with regulators, banks and payment providers with a motive to initially introduce its software, XCurrent, in China.
This allows banks to spontaneously settle cross-border payments with the end-to-end track without the need of cryptocurrency.
Head of the government of Ripple and for Asia Pacific’s regulatory relations, Sagar Sarbhai said:
“This year you will see more reports coming in on China, regarding educating and distinguishing us from some of the other cryptocurrencies out there. As we speak, our team is strategizing about entering the market, but it’s still very early days.”
Mr.Sarbhai fortified the lack of regulatory clarity around blockchain and cryptocurrency in China has so far delayed its market entry, but he hopes the company is making progress soon.
Last year CEO of Ripple Brad Garlinghouse said the launch in China was imminent.
Mr. Sarbhai added:
“We’re trying to get some regulatory clarity, we’ve started engaging informally with banks, FIs, and payment providers, speaking to regulators and government bodies, trying to educate on what Ripple is and what our vision is.
In Asia Pacific, we already have live clients in Japan, India, and Thailand… We’re in active discussions with almost all the countries in the Asia Pacific and are finding one bank almost every week.”
The company lately formed an association with Hong Kong-based money transfer organization Lian Lian.
This will make the Hong Kong-based company process real-time statements and e-commerce payments on account of businesses using RippleNet, which is Ripple’s payments system.
This gives it away for inbound payments market to China, but it is still not present in Mainland China.
But Mr. Sarbhai said he is “very bullish” on China, and the country works to form an essential part of an offensive strategy for the Asia Pacific.
Other issues around entering the Chinese market may be Chinese capital controls.
GTR reported that US Fintech companies could be vulnerable to trade actions between the world’s two largest economies as evidenced when in January the US Government blocks US$1.2bn sale of MoneyGram to Alibaba’s Ant Financial platform.
Mr. Sarbhai said:
“In our discussions with China’s regulatory bodies so far, this is something that hasn’t come up. We’re primarily a software company, licensing software to banks and enterprises who want to move money cross-border.
If a Chinese bank wants to use our solution and the regulator sees no risk with the solution, I don’t see why the administration, even in a so-called unfriendly environment, would have any issue with that. But this is in the beginning what you call the trade war and hostile environment.”
But because of the unpredictable nature of Ripple and other cryptocurrencies, it is not recommended for the general public to invest.