Ripple announced a partnership with MoneyGram, a leading company in the world when it comes to money transfers.
Details of cooperationA two-year contract was concluded under which Ripple will become the exclusive partner of MoneyGram in terms of virtual assets. Nevertheless, its competency may be more limited than it seems. It depends mainly on how many transactions will be carried out using this particular technology and what value they will have. For instance, according to this contract, there will be no possibility to buy or sell XRP at any MoneyGram location, which, obviously, is an ultimate goal that both companies will strive for. MoneyGram could run bitomats in various places around the world, as it would clearly help in the development of the industry. In places where it would not be possible, on the other hand, it would be required to widen the access to transactional services and enable logging into the electronic wallet. The head of Ripple, Brad Garlinghouse, regarded this parthership as groundbreaking.
Pros of the partnershipAccording to Ripple, the parthership will focus on the development of the xRapid project, which will allow real-time transactions. It is not about pre-financing to exchange cryptocurrencies for fiat currencies.
"XRP remains the most efficient digital asset for settlement with transaction fees at just fractions of a penny, compared to other digital asset fees of about $30 per transaction. Similarly, the average transaction time for XRP is two to three seconds with other top digital assets ranging from 15 minutes to an hour."- states Ripple in its statement while concluding the case.