Saudi Arabia’s central bank joins with Ripple to process international payments
The Saudi Arabian Monetary Authority will provide banks with program management and training.
The central bank for the Kingdom of Saudi Arabia has joined forced with U.S. cryptocurrency company Ripple to allow domestic banks to utilize the platform’s enterprise software solution to settle cross-border payments.
The Saudi Arabian Monetary Authority (SAMA) will pilot a program – the first of its kind by a central bank – with participating financial institutions using Ripple’s xCurrent product to process end-to-end payments.
xCurrent utilizes industry-standard cryptographic algorithms and public/private key cryptography to mathematically verify each transaction. Banks’ internal systems communicate with xCurrent over secure HTTPS connections and use OAuth 2.0 for authentication, according to Ripple’s xCurrent brochure.
SAMA will provide interested banks with program management and training, while bank customers will experience “faster, cheaper and more transparent” cross-border transactions, according to Team Ripple.
SAMA’s use of xCurrent also helps fuel global momentum for blockchain. The central bank is part of a conglomerate of more than 100 financial institutions that rely on Ripple to power international settlements.
Ripple’s distributed ledger, RippleNet, provides real-time messaging, plus financial clearing and settlements.
China’s LianLian Pay employs Ripple’s xCurrent solution to process same-day cross-border transactions.
UAE Exchange, a leading United Arab Emirates (UAE) global money transfers company, is another business that has adopted Ripple’s blockchain network in order to process real-time payment solutions for its customers.
After teaming with international currency transfers firm MoneyGram in January, Ripple recently announced that IDT Corporation and MercuryFX will pilot xRapid to settle retail remittances and corporate transactions.
French bank Crédit Agricole and its payment services will trial RippleNet to improve the efficiency of foreign exchange money transfers for regional banking customers who live near the Switzerland border.
Last year, the Bank of England successfully completed a proof-of-concept involving an interledger programme developed by Ripple. The test didn’t use fiat or cryptocurrency, nor did it employ blockchain technology.