Ripple is an ever-expanding company, owning it’s own cryptocurrency, XRP. The cryptocurrency is considered one of the most prominent ones in the world, standing right next to Ethereum and Bitcoin. Xago, a South African based company, will use the RippleNet network with the aim of increasing XRP liquidity within South Africa.
This is yet another move from Ripple to expand into the world. The company is known for it’s aggressive expansion within other countries, toting itself as a transnational way to send and receive funds quickly and easily.
Xago has plans to open the exchange to various retail customers and businesses. The reason they chose XRP was explained by Jurgen Kuhnel, Chief Executive Officer of Xago.
Kuhnel stated that Bitcoin had managed to solve the double-spending problem and had enabled people to do peer-to-peer transactions online and without the need for a trusted third party. This lack of reliance comes from the mining aspect of bitcoin, where individuals help facilitate transactions in return for a small reward.
Kuhnel stated that Ripple took this a step further. He explained that they built a more cost-effective, faster, decentralized ledger. This was made specifically to compete in the quick clearing and high throughput nature of the banking and retail environment.
Xago plans to launch a payment switch for this exchange the moment it gains enough liquidity to support it. When that happens, it will allow retailers of all sizes to use their current hardware and software systems to facilitate payments via XRP. This would effectively remove the need card networks and acquirers, wherever it is used.
Xago’s exchange will be based on the user’s mobile phone numbers for ease of use and general convenience. Xago’s relying heavily on its severely reduced transaction fees to compete in the well-established retail market.
Mark Chirnside, Chairman of Xago, stated that it was no small feat of Xago’s journey. With the launch and their open-arms approach when it comes to best practice and regulation compliance, Xago promises to be a future heavyweight within the payment’s arena.
South Africa is a developing country on the southern tip of the African continent. Interestingly, Elon Musk is from South Africa, as well as the literature giant, J.R.R Tolkien. The country itself is suffering from a fair bit of economic instability, so it’s going to be interesting to see what Xango does for its economy.
Other Ripple Ventures
A few days ago, Ripple struck up a partnership with the Finastra startup. This startup helps provide payment solutions for businesses across the globe. Finastra will be able to use the RippleNet network and its existing partners to help boost their business, as well as a new venture Ripple has in the works.
An On-Demand-Liquidity system, suspected to be branded xRapid, will directly use XRP and will doubtlessly have many customers for it.
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