On January 11, 2018, MoneyGram and Ripple excited the cryptocurrency market with a joint announcement. The two companies are working together to solve a problem that is enormous in scope.
For cryptocurrency enthusiasts who are continually looking for real-world use cases, a cross-border payment solution is similar to a “Holy Grail.” If large enterprises that move billions of dollars across borders every day turn towards cryptocurrency, it will spur the volume exponentially.
MoneyGram CEO Alex Holmes, in an interview with PYMNTS.com, seems cautiously optimistic that the test his company is performing in tandem with Ripple’s XRapid payment system could signal a step towards innovation. Holmes is a fan of digital ledge technology (DLT) and cryptocurrency and is confident that there’s a place for both in Moneygram’s future. Naturally, he’s not putting all of his money on Ripple or XRapid, but it’s clear that the company impresses him enough to test their solution.
MoneyGram and XRapid Are a Great Fit
The pilot test utilizes XRP and the XRP Ledger through the XRapid system for rapid money flow. There’s no question that “rapid” is the correct word when describing payments through the system, with transactions taking only 2 to 3 seconds. That speed is supersonic in comparison to rival technology and continues to be a chief product differentiator for XRP.
The XRapid solution seems particularly apt for a company like MoneyGram. MoneyGram International, Inc. has been around since 1940, has headquarters in Dallas, and operates money transfer services in more than 200 countries through a network of nearly 350,000 field offices. The company enough scale that any test of its system will be able to supply Ripple with a lot of information about how their solution holds up during real-world usage. Remittances through MoneyGram pass through 120 currencies every day. Using DLT and cryptocurrency can reduce complexity, save time, and push transaction fees to an all-time low.
Whether this pilot test will succeed is a matter of speculation. However, it’s a sign that cryptocurrency solutions are gaining attention in the right circles. Not only that, modern executives are opening their minds to potential solutions that could bring their companies significantly increased profits.
Will the Price of XRP Rise in 2018?
The price of XRP and where it will end up continues to be a matter of great interest. The coin hit an ATH of over $3.00 on January 6, 2018, before a correction. Now XRP is selling for $1.32 each and continues to stoke fierce debate between HODLers and skeptics. XRP is hardly alone in seeing a price decrease this month. In fact, with the steady stream of bad news that has been coming out concerning lax exchange security and numerous customer service problems, it’s no wonder some of the wind went out of the leading cryptocurrency’s sails. However, investors are likely to get back to their bullish attitudes quickly, especially for coins that continue to build partnerships.
Currently, there is an overhang of bad news that is likely suppressing another crypto bull run. However, traders and investors are unlikely to abandon any of the Top 10 projects. There may be a period of sideways trading, but it seems inevitable that with enough momentum on the adoption front, prices can still rise sharply in 2018. XRP remains a project to watch, primarily because Ripple now has 100 customers and is in talks with household name enterprises. If enough large enterprises sign on, it’s fair to say that the bull run has barely begun.