Blockchain technology is completely revolutionizing the different sectors around us. Even banks are open to the idea of blockchain and are ready to accept what blockchain has to offer.
Saudi Arabia’s central bank seems to be in the front row as they recently made a deal with Ripple for cross-border transactions. This deal will enable faster cross-border transactions.
In the statement released by Saudi Arabian Monetary Authority(SAMA), they mentioned their agreement with Ripple on using their xCurrent platform. The platform will be used in the pilot platform.
SAMA aims to use blockchain power to settle transactions locally and outside. They also aim to work with other banks within Saudi Arabia so that they can remove the transaction fees and make them free for the customers using it.
Even though XRP(currency) is not directly related to pilot program, its value is bound to increase due to the current partnership with SAMA and Western Union.
Ripple has seen its own share of ups and downs. It went up to a historic high of $3.23 during its initial bull run. However, a steep correction saw a drop of 50%. At the time of writing, it is hovering around $1.16.
These announcements pushed the price from $1.08 to $1.15. However, the increase in its price can be a sum of positive market sentiments around Ripple.
SAMA is the second central bank that is using blockchain technology. The first bank to accept Ripple technology was the Bank of England. This agreement will make SAMA part of the 100 financial institutions who are using Ripple to power their transactions around the world.
The infrastructure head global head at Ripple, Dilip Roa, welcomes the agreement with SAMA. He further added, “Central banks around the world are leaning into blockchain technology in recognition of how it can transform cross-border payments, resulting in lower barriers to trade and commerce for both corporates and consumers.”