Why Santander Doesnâ€™t Want to Use Ripple for International Payments Yet
There may be trouble in paradise with one of Rippleâ€™s major partners.
Santander, the large scale Spanish bank and one of Rippleâ€™s major partners, is still hesitant to adopt XRP as part of its international payment network, One Pay FX. The company reasoned that the token â€œwas not actively traded in enough marketsâ€� to support the companyâ€™s banking needs.
During an interview with the Financial Times, Cedric Menager, chief executive officer of One Pay FX, explained that Santander wants to provide the â€œbest [user experience] as quickly as possible.â€� He also said that the bank hopes to â€œoperate in as many currencies and corridors as possible from the beginning.â€�
Ripple clarified that Santander is still using some of the companyâ€™s software for its cross-border payment solution, and noted that they consider the Spanish bank to be â€œone of our largest and most important customersâ€�.
In February, Rippleâ€™s CEO Brad Garlinghouse hinted that banks would soon be less wary of working with digital assets. He stated that once regulators â€“ referring to U.S. watch dogs â€“ understand â€œyouâ€™re not circumventing regulatory frameworks, they get very comfortable very quickly.â€�
Garlinghouse also claimed that Ripple was used for $54 million in cash flows to Mexico in January. This figure represents 7.5% of the total flow of U.S. dollars to Mexican pesos.
Cointelegraph recently reported that Sygnum Bank, the first crypto bank licensed by FINMA, will allow its users to invest in Rippleâ€™s XRP token via their e-banking portal.
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