The recent decrease in digital currency prices isn’t discouraging banks from experimenting with blockchain technology. Recent reports now indicate that a group of South Korean and Japanese banks have begun working together on a blockchain-based project that will utilize Ripple in order to issue cross-border payments.
The Ripple pilot program has been launched by the Japan bank Consortium, and brings together financial institutions from both Japan and South Korea, such as the Woori or Shinhan Bank. However, it is important to point out the fact that the Japan Bank Consortium, which has been organized by SBI Ripple Asia last year, brings together over 60 banks in Japan.
The project in question will base itself on the Ripple settlement technology known as xCurrent, which will be used to settle all transactions that take place between the Japanese and South Korean banks. Once it launches, it’ll mark the first time money moves from Japan to South Korea via the RippleNet protocol. Some of the main benefits associated with the projects include the fact that money can be sent instantly from one country to another, while also removing the need of a middleman. At the same time, the costs associated with processing the transaction will be much lower.
In a recent press statement made by the director of partnerships behind Ripple, it was mentioned that: “The Japan Bank Consortium’s pilot with Woori Bank and Shinhan Bank brings us closer to sending money in an important corridor (…) The use of RippleNet to send cross-border payments reinforces that financial institutions are ready to provide a modern payments experience and enable to the Internet of Value.”
Apart from getting ready to launch this project, the Japan Bank Consortium has also created its very own cryptocurrency and blockchain working group, which will focus on further exploring the other potential use cases of the technology, while also adding more liquidity to the cross-border payment network.
Based on everything that has been outlined so far, it is expected that soon enough, other banks will also consider adopting a similar system, which will in return, bring more liquidity to the financial market, while also making monetary transfers cheaper and more secure.
