articleStartImage

One of the largest remittance companies has just taken a bold step towards embracing blockchain technology through a partnership with the organization behind the XRP token. UAE Exchange, a foreign exchange and remittance provider that operates in 30 countries, has joined Ripple’s network, RippleNet, with the aim of easing cross-border payments across its own infrastructure.

“Incorporating Ripple’s blockchain technology into our payments systems will bring customers an enhanced, new payments experience. The early adoption of this game-changing technology allows us to offer a competitive service, as it will have an impact on the speed and cost of cross-border transactions,” said Promoth Manghat, CEO of UAE Exchange.

Manghat is an ardent supporter of blockchain, so it was natural for him to pursue a partnership that would lead to his company adopting the technology.

Speaking to Arabian Business in October 2017, he said:

“The average consumer may never know about blockchain, but indirectly he will reap the benefits of the efficiencies it brings forth across industries in his everyday life.”

Over the past week, Ripple’s price has been on the mend, experiencing gains more dramatic than those posted by Bitcoin. On Monday, its value topped $1, a steady recovery from last week’s slump to $0.75.

However, the announcement by UAE Exchange had very little effect on the cryptocurrency’s value.

This may be due to the fact that the exchange opted against using Ripple’s XRP token, choosing instead to employ the underlying blockchain technology.

Nonetheless, Ripple founder Chris Larsen was featured recently in Forbes’ first ever crypto rich list. He occupies the top spot, with an estimated net worth of $20 billion based on the value of the Ripple tokens he possesses.

Though not contributing directly to XRP’s value, the UAE Exchange partnership might help validate Ripple as a company and temper the skepticism expressed by the press in recent days.