Friday , October 22 2021

Banks from Brazil and Japan will use the Ripple service for cross-border payments CryptoNews


The Japanese bank MUFG and Bradesco have formed an alliance for the development of a cross-border payment system between Japan and Brazil, a product that will be established using the Ripple service. Bradesco is the second largest private bank in Brazil.

According to a press release issued by MUFG, the Mitsubichi banking unit UFJ Financial Gorup, the banks signed a memorandum regarding the extension of the previous agreement in 2017, which obliged both entities to work together in the development of a system for sending money transfers between residents of Japan and Brazil.

Among the expectations of this new project, Banco MUFG Brasil, a branch of the Japanese group for Latin America and Bradesco, expect the payment system to offer high processing speed, transparency in all operations and traceability.

The contract provides that the American company Ripple will be another member in the development of the payment system. The original San Francisco signature, like other cryptocurrencies of the market, offers the possibility of making instant international payments with a blockchain, a service that in a specific case is offered to banks as a commercial product.

The MUFG Ripple Alliance has remained unchanged in the development of financial products for the private sector. This entity is one of the most recognized in Japan and was one of the first to settle in Brazil. MUFG cooperated with Ripple from the moment it became a part of a consortium of Japanese banks focusing on cross-border payment services. The bank is also part of the Global Ripple Payments Management Group, becoming its technological ally to integrate blockchain solutions into its services – although the company also co-operated with Coinbase, Mizuho Bank and IBM.

Because the system is still in development, it is not known whether it will use cryptocurrencies coins or coins issued by central banks.

In this sense, recently the MoneyTap application – one of the first RippleNet-sponsored blockchain transfer systems in Japan – has confirmed that it will not use XRP cryptocurrency for transfer, but a technology developed by Ripple & # 39; and called XCurrent.

This technology was developed to conduct transactions through the system messenger, which translates payment information to register it in the protocol Interledgerand reconcile the necessary information to check the correctness of the transfer without the need to use the crypto-currency.

Ripple in Asia

Beyond Brazil, Ripple consolidates its business market in Asia, the continent where a new payment system operated by RippleNet is available, which will provide services for Thai Ayudhya bank (Krugsri), for MUFG and for the American Standard Chartered bank,

It is an international payment system called "Krugsri Blockchain Interledger", which will allow you to send transfers between Japan and Thailandand also in the future will also provide services in Singapore, with the help of Standard Chartered.

The launch of the product has been cataloged by the Thai bank as an innovation "in the money transfer sector". But already known that the system will not use XRP as a currency, but XCurrentConfirming that this is a method that is increasingly popular in the banking products offered by Ripple.

As part of the project, in May a group of pilot tests was carried out to check the effective functioning of xCurrent in the payment system, tests in which funds were exchanged from Thailand to Singapore and vice versa.

In addition to this project, Ripple managed to consolidate its product with a total of 100 banking entities around the world, many of which are located in Asia, including the latest alliances with the South Korean bank Woori Bank, Siam Commercial Thai bank and financial institution SBI Holdings for international payments .

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