Agreement has been signed in between (Saudi Arabian Monetary Authority) SAMA and Ripple. As per which xCurrent payment method will be deployed for cross-payments, which might assist in generating a savings of close to $400 million every year.
Ripple Blockchain distributed LEDGER technology: Unraveling the insites
As the news goes, UAE Exchange has announced its deal with Ripple money transfer program which allows ‘real-time’ cross-border payments with better speed, transparency and measurably lesser cost.
Basically, soon a pilot program will be launched, which with the use of distributed ledger technology (DLT) will assist Saudi banks in exploring new cross-borders transactions solutions while saving up to $400 million in coming time frame.
Proper preparation like program management / supervision and a list of other support amenities has been assured to be instigated by Ripple and SAMA. As a matter of fact, to make sure technology is applicably adopted before initiating its wider use, a pilot program has been designed with a small number of banks and minor transactions.
As per Moody’s, with a broader community of migrant workers like most other GCC countries, a huge difference can add up to a large number of low-value remittance transactions to home countries. Also, Moody’s investors services added that “Saudi banks will potentially improve their profitability on cross-border transactions by reducing the cost of each transaction while gaining revenue with higher volume as the customer experience improves with the saving of money and time”.