Many financial institutions around the world want to venture into blockchain technology. Some banks form their own consortia, whereas others will use existing service providers. Krungsri, a bank in Thailand, will use Ripple technology to introduce real-time global funds transfers. This is another major validation for Ripple. This particular venture will make use of the Interledger protocol, which was invented at Ripple.
This news is quite interesting, as it heralds a major change in the financial sector. The Interledger protocol can help institutions achieve real-time global money transfers. It can do so at a fraction of the costs banks pay today.Having a cheaper and better solution available is always something worth checking out. It appears Krungsri wants to use this technology for both business and consumer payments moving forward.
Krungsri Will Embrace the Interledger Protocol
It is worth noting Krungsri obtained approval by the bank of Thailand to go ahead with this venture. This venture is part of the new Regulatory Sandbox guidelines active in the country. The Krungsri Consumer Group feels now is the time to focus on digital banking. Blockchain technology will play an integral role in this process. The choice for Interledger-based solutions is quite significant as well. This particular solution provides privacy-centric features, which is quite valuable to this bank.
Having the ability to complete international payments in seconds is something to look forward to. Krungsri has been working together with Mitsubishi UFJ Financial Group in this regard. The Japanese financial institution is also actively experimenting with Ripple technology. It is possible they will use Interledger in the future, although that remains to be seen. The bigger question is what this means for the XRP native asset. Right now, there is no official mention of either institution using it to speed up global transfers.
It is evident the blockchain is on the radar of virtually all major banks in Asia right now. Interledger and Ripple are key partners to make this happen. No other blockchain service providers come even close to offering such a complete solution right now. Krungsri is now the first bank in Thailand to officially use Interledger technology. It will be quite interesting to see how this will affect their day-to-day operations moving forward.
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