American Financial Giant PNC to Use Ripple Technology for International Payments

By September 18, 2018 No Comments

Ripple recently announced that PNC, one of the top ten American banks is going to utilize RippleNet to process global payments for its customers. It is being reported that a specific PNC unit – Treasury Management – is going to utilize xCurrent, Ripple’s blockchain solution to increase the velocity of overseas transactions for their American commercial clients.
Ripple reiterates the fact that xCurrent will enable business clients of PNC to receive payments against their invoices instantaneously and that this will alter the way they manage both accounts as well as their working capital.
Asheesh Birla, the Senior VP for Product Management at Ripple has said that he thinks the utilization of xCurrent in banking is the initial step towards adoption of the various other Ripple solutions like xRapid which is scheduled to be launched in the next few months. “It’s a way [for the banks] to get their toe into the water,” Birla said.
This announcement has come in spite of the fact that some employees at Ripple have shown skepticism to the idea of using xCurrent for cross-border payments. It was reported earlier this year that Ripple’s chief cryptographer, David Schwartz had said that financial institutions were not likely to utilize this technology primarily because of the lack of scalability and the existence of problems related to privacy. PNC which is one of the top ten American banks with 8 million customers and retail branches across 19 states have followed some of the other global financial institutions by partnering with Ripple.
For example, late last year, American Express announced the creation of a Business-to-Business payments app between US corporate customers and Santander customers in the UK powered by Ripple. Earlier this year, a Japanese bank consortium announced that it planned on launching an instant domestic remittance mobile app called MoneyTap which was powered by Ripple.
In April 2018, it was reported that Santander, the Spanish bank, had launched a Ripple powered blockchain payment network called One Pay FX and that in doing so had become the first international bank to launch such a service.

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