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MoneyGram to Test Payments With XRP Coins

MoneyGram to Test Payments With XRP Coins

Ripple is a cryptocurrency (XRP) issued by a blockchain startup of the same name and has enjoyed an astonishing rise in 2018 following in the footsteps of bitcoin.

Ripple was more appealing than Bitcoin to Moneygram because of Bitcoin's fees.

The partnership will see MoneyGram pilot the use of XRP through a new Ripple service, called xRapid, created to provide liquidity to financial institutions.

XRP allows banks and payment companies to send money quickly, no matter the location.

"There's a lot of volatility in the digital asset market broadly", says Garlinghouse, "and certainly that's been true in the bitcoin market and it's true for XRP".

"The payments problem doesn't just affect banks, it also affects companies like MoneyGram, which help people get money to the ones they care about", Ripple Chief Executive Officer Brad Garlinghouse said in a statement.

This notion of using digital currency as a form of bridge funding is not unique to XRP.

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For MoneyGram, the tie-up with Ripple may provide a way to maintain its share of the money transfer market.

Ripple already boasts joint ventures with American Express and Santander.

According to a press release, MoneyGram will test Ripple's xRapid service due to its claimed speed and cost efficiency.

"Every day blockchain technology is changing the norm and encouraging innovation".

MoneyGram CEO Alex Holmes said the company looks forward to using xRapid in its pilot program, adding: "We're hopeful it will increase efficiency and improve services to MoneyGram's customers". And in November, a prominent tech figure, Michael Arrington, announced the creation of a $100 million hedge fund denominated in XRP.

Ripple has been the subject of much discussion since early December when XRP began to soar exponentially to momentarily become the cryptocurrency with world's second largest market cap at more than $120bn but had since fallen by more than half. The currency boomed to an all-time high of over $3.5 - following which it witnessed a fall in the price.