Ripple has entered into a partnership with Travelex.
Ripple made the announcement on August 18 that the international currency exchange company Travelex would use RippleNet's ODL to enable XRP-based cross-border payments between businesses. In addition to this, it was said that Travelex Bank is the only bank in Brazil that is permitted by the country's central bank to deal exclusively in international currencies.
Ripple says that this is the first time a Latin American bank has utilized ODL, despite the fact that other Latin American institutions, such as Banco Rendimento, Remessa Online, Frente Corretora, and Banco Topazio have already used RippleNet services.
Will Introduce a Brand New Cryptocurrency Payment Service
First, Travelex will enable cross-border payments between Brazil and Mexico, with the intention of expanding this capability to additional payment channels in the region as well as new use cases specifically designed to meet the requirements of individual businesses.
The announcement follows the Brazilian government's passage in April 2022 of its first "Bitcoin law," which aimed to establish a legislative framework for cryptocurrencies.
The same can be said about Brazil, which is currently in the process of launching a central bank digital currency (CBDC) (CBDC). The decision, on the other hand, has aroused discussion, with one economist saying that the CBDC will be able to prevent bank runs and set other constraints on individuals' access to money. Fabio Araujo claims that the CBDC will be able to do this.
According to the CEO of Ripple, Brad Garlinghouse, the fact that Brazil has adopted a regulatory setting that is welcoming to cryptocurrencies, in addition to the expanding institutional interest in solutions for digital assets, makes the country a wonderful match for the ODL:
"Brazil is an important market for Ripple because of its role as an anchor to commerce in Latin America, its openness to cryptocurrencies, and country-wide measures that support fintech development. As a direct consequence of this, the industry is undergoing a frenzy of activity as a result of the increasing number of institutions that are looking to incorporate crypto and blockchain technology in order to alleviate client pain points.
According to Garlinghouse, the use of the ODL service by Travelex will significantly improve the efficiency of cross-border payments, and given that Brazil receives more than $780 billion in payments annually:
"Since day one, we've been committed to developing solutions with actual value, and we're thrilled to engage with an innovative partner like Travelex Bank to facilitate more efficient money transfers for the benefit of its Brazilian consumers.