Brazil is at the center of Ripple’s business strategy for Latin America, and its efforts in the country are accelerating.
In an interview earlier this week with Future of Finance on YouTube, Ripple Head of Global Banking Marjan Delatinne said that the San Francisco startup is actively working on developing a payments corridor in Brazil.
“We are expanding this service now to more and more corridors which are usually exotic corridors with many challenges, like the Philippines [dan] soon in Brazil, so let’s say there’s an agenda and a big roadmap about that,” he said when explaining the On-Demand Liquidity (ODL) technology facility.
Ripple Infrastructure For Brazil
Will use On-Demand Liquidity (ODL) technology to ensure instant cash flow in a much cheaper way than the methods offered by traditional banks and fintechs.
Delantinne explained that Ripple’s focus is on creating products that dynamically provide liquidity, rather than using traditional approaches like the Nostro/Vostro system.
It can simplify the lives of clients and their banks, making it easier to process cross-border payments. After all, this is what ODL is all about, and the technology behind the payments corridor Ripple will build in Brazil.
“I think the way correspondent banking works is based on this Nostro/Vostro; and this creates a lot of trapped capital,said Delantinne. “So, is there a way to find liquidity on demand?“
As you might expect, Delantinne explains why XRP can provide that solution. “How we do this […] using XRP — which is our native crypto asset — as a bridge between two fiat currencies. And it completely revolutionized the way pre-funding happens today. “
However, such a solution would likely require complex logistical planning. And perhaps this could explain why Ripple executives held a virtual “closed” meeting last week with the president of Brazil’s central bank.
The use of XRP for payment products in a market as big as Brazil could be very beneficial for the third largest cryptocurrency digital currency by market cap.
On the other hand, XRP did not pull back from its bearish trend after its recent partnership with Bitso, which increased trading and transaction volume in Mexico (even surpassing Bitcoin in the region for a while).