Middle-East: Ripple Strikes a Partnership Deal with The UAE Exchange
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On 11th February, Ripple officially signed a deal to partner with the UAE Exchange. The Ripple Network would provide the blockchain technology to the UAE Exchange for fast processing of international, cross-border, transactions within a short period. This comes amid huge criticism of the Ripple’s digital currency, XRP, which has had a downward movement, since the start of the year. Although all the coins suffered in terms of the massive dip, Ripple has suffered the most. With such a major forex exchange partner, the price of XRP might continue to stabilize and increase in the long run.
The Ripple effect
Ripple is not just a cryptocurrency. It is also a payment system which utilizes the blockchain technology to help speed up payments across border. As long as you are within the Ripple Network, the confirmation of transactions will be faster as compared to bitcoin, which uses a different technology. Financial institutions like the UAE Exchange can use this technology to increase the speed with which they complete border to border transactions and thus improve customer service. The Ripple Network can complete international cross-border payments within seconds, which makes it a real asset for the UAE Exchange.
Huge confidence boost
The partnership will send shockwaves not only in the XRP, but also to other financial institutions who were holding back their move to invest in the ripple technology. Financial institutions can benefit from low cost and unimaginable speeds in processing cross-border payments. The UAE Exchange CEO, Promoth Manghat, mentioned this and highlighted the key benefits to accrue from the Ripple Network after the conclusion of the deal.
Not so fast
It is not all jubilation for investors in XRP. This is because the UAE Exchange is only interested in the payment system part of Ripple. The Ripple Network is different from XRP. In that case, the partnership might not have a huge influence on the price of Ripple. This is one of the major misconceptions those investing in Ripple, will have.
All in all, it still serves as a major milestone for Ripple. Even though it does not touch on XRP, it adds to the confidence of both investors and corporates towards getting onboard with the ripple technology.