National Bank of Abu Dhabi Adopts Ripple Cryptocurrency Software
Although it is often overlooked by investors more eager to focus on Bitcoin and Ethereum, Ripple has several factors in its favor in comparison with the rest of the cryptocurrency field. The currency, now sporting the third-largest market capitalization in the industry, is designed for seamless transactions which can be settled by banks in real time. The result is that transaction fees can be kept down for both banks and individual customers. Considering that long transaction settlement times and unstable fees have been two of the largest barriers to cryptocurrencies generally breaking into the broader financial world, Ripple seems poised to become a favorite among financial institutions. Now, the National Bank of Abu Dhabi has announced its adoption of the Ripple protocol for some of its transactions. Will this be the impetus that Ripple needs to garner more attention around the world?
National Bank of Abu Dhabi to Use Ripple for Cross-Border Transactions
Late last week, the National Bank of Abu Dhabi announced plans to adopt the Ripple protocol for all cross-border transactions. According to Live Bitcoin News, the National Bank has indicated a particular interest in enhancing the experience of its customers, and bank leaders seem to have agreed that blockchain technology can be a useful way of doing this. When it comes to selecting from different blockchain technologies, Ripple has won out, and perhaps for good reason. Ripple is focused on facilitating cross-border transactions and may be used to complete transfers across multiple distributed ledgers.
The National Bank of Abu Dhabi will reportedly integrate the Ripple protocol into its existing infrastructure. The result is that regional customers of the bank will have the ability to transfer funds to beneficiary accounts instantly. All of their transactions will take place in real time. That the United Arab Emirates, the home of the bank in question, is one of the top remittance-sending countries in the world, suggests that the Ripple technology will be put into broad use through this partnership.
Ripple Continues to Gain Attention
Ripple technology has gained increasing levels of attention in recent months as banks around the world have shown interest in its real-time payment flows. It is likely that other banks will be watching the results of the Abu Dhabi integration carefully to see how Ripple's distributed ledger system holds up under pressure. In the meantime, Ripple's currency, XRP, has grown considerably in price but has failed to see the same recent rally results that Ethereum and Bitcoin have. Should the technology prove successful in this latest partnership, perhaps Ripple will see concurrent benefits to its currency prices as well. If that is the case, Ripple may see even more banks around the world looking to enter into partnerships.