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There are many remittance companies in UAE, Saudi & Oman where migrant workers send their salary back home to India, Pakistan, Bangladesh, Nepal & Philippines.
by t1o5 9y ago
There are many remittance companies in UAE, Saudi & Oman where migrant workers send their salary back home to India, Pakistan, Bangladesh, Nepal & Philippines. UAE Exchange being the major player there. Many of these companies might want to signup for Ripple because they can avoid the middlemen (what if Ripple becomes the middlemen ?) , thus more profits while keeping the fees low for customers and have rapid money transfer rather than waiting days for bank clearance.
The problem in implementing this is the origin & destination country should have legal mechanisms in place to operate this. Many low income migrant workers use schemes called "Hawala" , "Hundi" to avoid the fees charged by the remittance companies.
Maybe RippleNet can work in favor for both consumers and providers. Do keep in mind that RippleNet is not the same as XRP. The remittance houses will have to maintain Nostro and Vostro accounts for funding which I believe is currently maintained in USD. They can switch this to XRP to avoid those transaction fees and overhead.
- cheeseandpickle 9y agoThat’s rights. XRapid removes the need for dormant FIAT sitting in Nostro/Vostro accounts.
- perseusprime11 9y agoWhether you use ripple or any other intermediary, it will not save conversion costs from one currency to other. You are really selling one currency and buying other.
- tim333 9y agoThe actual costs of converting currencies on the normal money markets using an account like interactive brokers are almost zero - maybe 0.05% or you can even make a profit on it if you put in a limit order near the current price. The costs are mostly in getting money in to the system at one end and out at the other. I'm not sure how going via crypto will be any cheaper - it's usually more expensive in my experience.
- perseusprime11 9y agoI agree. Ripple is a rip off. Converting to intermediary is not going to help. The costs I was takking about are the exchange rate that local banks charge.
- jerguismi 9y ago> Maybe RippleNet can work in favor for both consumers and providers. Do keep in mind that RippleNet is not the same as XRP. The remittance houses will have to maintain Nostro and Vostro accounts for funding which I believe is currently maintained in USD. They can switch this to XRP to avoid those transaction fees and overhead. For me this doesn't make much sense, why would the remittance operators be willing to hold XRP now? It is unstable and volatile like Bitcoin. This whole ripple thing sounds like an epic scam. The actual technology is just a story that people can tell without actually understanding the business. Then the actual business is pumping the token, and then dumping at some point.
- justboxing 9y ago> why would the remittance operators be willing to hold XRP now? They don't hold it forever. The sender and receiver hold XRP only for the period of time that the transaction is confirmed and settled, and according to Ripple CEO Brad Garlinghouse, this time is as little as 3 seconds.[1] Source: See https://youtu.be/vnGNycbhJlE?t=388 https://youtu.be/vnGNycbhJlE?t=388 at 6:28. He explains this.