Ripple (XRP) – The continuous wave of cryptocurrency is not well grounded in China, going by the most populous country’s alleged possible clamp down on cryptocurrency. With the country implementing stiffer policies to cut the hands of cryptocurrency by banning Initial Coin Offerings (ICOs) and placing embargo on domestic fiat-crypto exchanges, restricting citizens from exchange services including foreign exchange, one can arguably point out that China is not a safe place where cryptocurrency would progress.
While the ban has sent many investors out of China, beyond our thoughts, many a number of crypto and blockchain ideas still flourish in China both from citizens and investors from far places. These innovators have not been deterred by governmental forces restricting their innovative capability to what the law of the land actually desires.
One of those who see a future in Chinese blockchain industry is Ripple. Ripple is beyond the game of blockchain, the cryptocurrency firm is making landmark achievement in cross-border transfer all over the world. Then, how easy is it for Ripple to coast the whole of China?
Recently, Ripple aired a partnership with China-based payment services provider Lian-Lian before making a cross-border transaction MOU with Saudi Arabian Monetary Authority, a move that is poised to saving the country of close to $200-$400 every year.
Lian-Lian is an Hong Kong-based payment service provider. It partnered with Ripple to use its blockchain innovations for fast on-demand cross-border transaction. According to the agreement reached, Lian-Lian will use xCurrent platform for all necessary settlements, giving it the advantage to undergo transaction relation with nearly all Asian banks.
Be that as it may, one surprising thing is that a pronouncement which may stand to deter Ripple from moving ahead in China was that made by Yi Lu, co-founder of SV Insight, a media company that organized the Blockchain Connect conference held in San Francisco, in late January 2018, where Brad Garlinghouse, the CEO of Ripple spoke.
Yi Lu, who was interviewed by Cointelegraph said “Garlinghouse spoke about how to promote Ripple in the Asian markets. I think that is one thing that is very interesting because you have an audience with a lot of users and token holders in China. But Ripple doesn’t have much business in China, they probably can’t promote to the Chinese market.”
Despite the comment, the CEO of Ripple has said coasting China is ‘imminent’ and not an impossibility again. If it is possible, approaching China can come from Alibaba. Alibaba is regarded as Chinese’ Amazon.
While there have been rumors Alibaba is quietly launching cryptocurrency mining platform, there is no evidence whatsoever to substantiate the rumor. If Ripple could get connected with Alibaba as the only coin on its market square, there is high tendency the coin booms in the cryptospace. Alibaba is the Amazon of China. The platform sells good to mostly all places, including Africa. The population of buyers and sellers keep on increasing on Alibaba.
Aside that, Alibaba is also the owner of Alipay, China’s most depended upon payment provider. A good collaboration especially on the use of xCurrent with Ripple will favor Alipay, and the cryptocurrency platform as well.
In the past, some statement credited to the founder of Alibaba, Jack Ma made it clear that the business mogul knows little about cryptocurrency, and it is not intending to incorporate crypto on the platform. Influential crypto investor like Brad Garlinghouse, the CEO of Ripple could enlighten the multimillionaire on the favorable output of cryptocurrency.
How Does Ripple Plan To Outsmart Chinese Regulations?
Many opined that due to regulations, Ripple may not be able to get this kind of opportunity in China. Surprisingly, Ripple, according to the firm’s head of government and regulatory relations for Asia Pacific, Sagar Sarbh, the company is in discussion with financial service providers, regulators, banks and get some regulations clarity to be able to flourish in Chinese financial market.
“This year you will see more announcements coming in on China, in terms of educating and differentiating us from some of the other cryptocurrencies that are out there. As we speak, our team is strategizing about entering the market, but it’s still very early days.”
“In our discussions with China’s regulatory bodies so far, this is something that hasn’t come up. We’re essentially a software company, licensing software to banks and enterprises who want to move money cross-border. If a Chinese bank wants to use our solution and the regulator sees no risk with the solution, I don’t see why the government, even in a so-called hostile environment, would have any issue with that. But this is early days in what you call the trade war and hostile environment.”
Is There A Turn Around On Chinese Regulation?
It seems Chinese government has noticed that China has a lot to benefit in the recent wave of cryptocurrency, by opening doors to companies like Ripple who have a separate understanding of cryptocurrency by approaching blockchain, despite decentralization, without standing to defy regulatory bodies’ law and order.
According to an information shared by Global Trade Review, confirming a statement from the People’s Bank of China (PBOC) made on Wednesday, the Chinese government advised that those coming into Chinese market have to set up local presence, they must have necessary payment infrastructure, and must at the same time have clients information managed in China.
“Overseas institutions intending to provide electronic payment services for domestic transactions and cross-border transactions of the main entities within the territory of the People’s Republic of China should have corresponding qualifications and access conditions.”
The statement adds to Ripple’s readiness to flood Chinese market come what may. While it may not be easy to coast Chinese financial market, Ripple should be able to do it going by the giant steps the firm has been making in different countries of the world. Except Chinese financial firms want to spend whopping amount in achieving cross-border payment, liaising with Ripple is inevitable.
Image Credit: Altcoin Today.