World Bank praises Ripple in new report

According to the report, traditional B2B (Business-to-Business) transactions are slow and cumbersome. This leads to high costs and long transfer times. Therefore, the door is wide open for new technologies, according to the authors.

In the wording it says in addition:

"This lack makes the international payment industry ripe for disruption and innovation. Some believe that distributed technologies (DLT) have the potential to bring about change in the industry. And indeed, international B2B payments are a potential application area of DLT [...] The use of DLT could also reduce compliance costs and increase the transparency and traceability of payments."

In particular, the report highlights Ripples xRapid as an exemplary application that is already "actively tested" in the marketplace:

"In 2018, Ripple, a Fintech company, conducted the xRapid pilot project, a DLT-based solution for payments in the US-Mexico corridor. Financial institutions participating in the pilot project saved 40%-70% on costs and the average transaction time was less than two minutes. The time to transfer via xRapid was just three seconds."

The report also describes attempts by traditional banks to integrate DLT. Specifically, the planned JP Morgan Coin is also mentioned here.

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