Will Ripple's XRP Become a Mainstream Currency?

This article is about how Ripple's blockchain technology is about to be made available to 61 banks in Japan using a mobile application called Money Tap. This could also mean XRP will become a globally recognized currency.

Ripple is currently the third largest blockchain technology group today in terms of market capitalization. Their digital currency is XRP, and this well-known crypto could be making its way into Japan's mainstream financial system via a brand new Android and iOS mobile application.

The new mobile app will be named Money Tap and specifically aimed at the Japnese marketplace. Now, this is not the same Money Tap available in countries like India - it is just a coincidence that SBI Holdings in Japan has named its new app with the same name.

Money Tap App Will Speed Up Transactions At Less Cost

Money Tap will be using Ripple's blockchain tech to speed up transactions made by consumers in the country. The app will remove friction from transactions that create high costs as well as slower payment processing. ATM fees will be almost eradicated from the Japanese marketplace and bank transfers will be instantaneous. Furthermore, the system will be available 24 hours a day 7 days a week.

The current payment infrastructure in Japan uses a system called Zengin, which is only available from 8:30 am to 3:30 pm, and it is closed on the weekends. It is a decades-old system with the added pitfalls of increasing the time taken to push through transactions and consumers are regularly hit with banking fees.

SBI Holdings, which currently has a joint partnership with Ripple via SBI Ripple Asia, is set to revolutionize Japan's monetary system with the help of Ripple.

Why is This App So Significant To Our Futures?

This is the first time a banking application has used Ripple's blockchain tech to introduce a consumer based payment solution. Furthermore, the SBI Ripple Asia partnership has 61 Japanese banks in its Japanese Banking Consortium. Three of those banks will go live on the app to pilot its effectiveness. Once successful, another 58 banks will join the app. This is 80% of Japan's banking assets.

The significance here is obvious. More than three-quarters of the Japanese banking industry will be using an application that supports Japanese YEN, but could also support Ripple's flagship cryptocurrency XRP.

Should XRP be added as a currency option to Money Tap, in theory, you could say that 80% of Japan's population will have the option to pay using Yen or XRP.

What Will Happen If XRP Becomes A Mainstream Currency

If at some point in the future SBI Holdings agrees with Ripple to add XRP as an optional a currency to the Money Tap app, then the rest of the world will be watching with a close eye. It will be the first cryptocurrency to be readily available to millions of consumers.

Furthermore, any businesses currently doing business with Japan may be more inclined to deal in XRP rather than YEN or US$. This is because of the borderless features of cryptocurrencies. It would mean there will be no middle-man in between transactions to take a percentage cut of the transaction and exchange rates may also be absconded from the process. The latter will depend on the nature of the business and how US$ and YEN are paired with XRP in the cryptocurrency financial sphere.

Should this happen, then XRP may just become contagious as companies outside of Japan start to use XRP and spread the word within their own domestic markets. This could open the doors for Ripple's blockchain tech to begin introducing domestic payment solutions globally.

The offset of this would be multiple countries using XRP digital currency and Ripple tech, which ultimately would result in many of those businesses using XRP as a cross-border payment method to deal with other overseas companies they do business with.

From here, Ripple could literally be the very first mainstream cryptocurrency of the future. Money Tap will be the basis of the company's push to make Ripple a worldwide currency in the mainstream and with 80% of Japan's banking industry to pilot, this is the closest we have seen a digital currency come to becoming a mainstream.

You can read more about Ripple here on Teculator: /resources/17360-Understanding-Ripple-Pros-and-Cons.aspx


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