Think about this. Ripple and blockchain in China? Well, that’s what the crypto-sphere needs. If we take the words of Ripple the company, then it is likely that Chinese banks may end up utilizing Ripple blockchain technology for their cross-border payments in the course of 2018.
However, note this. While banks might end up using Ripple’s RTXP, these banks won’t utilize their native token, the XRP.
Strict Chinese Market Controls
It’s often about strict market regulation that remains a big hindrance. This is on top of capital controls that effectively control cash repatriations from mainland China. Inevitably, unless they opt out, money transfer companies have to contend with while trying to venture in China. China places a maximum cap of RMB 100,000 per year saying this will help curb money laundering and terrorist financing.
Additionally, China’s stance on cryptocurrency and ICOs in general is another huge obstacle. In fact sometimes back, the market were awash with rumors that there were plans to ban all cryptocurrencies and mining in general.
As I type this, Chinese investors are barred from buying any forms of cryptos as its illegal for cryptocurrency exchanges to operate in mainland China. These are some of the regulatory framework and hardliner stance limiting entry of Ripple to the second largest economy in the world. Nevertheless, Ripple is making baby steps and having informal negotiations as they seek “regulatory clarity” from government bodies and regulators.
Ripple Market Strategy
According to Sagar Sarbhai , the head of Ripple Governments and Regulatory Relations of the Asia Pacific,Ripple supporters should gear up for more Chinese headlines in the coming days. Before they make inroads, they plan of “differentiating themselves from other cryptocurrencies” through rigorous education.
In a statement he said:
“This year you will see more announcements coming in on China in terms of educating and differentiating us from some of the other cryptocurrencies that are out there.As we speak, our team is strategizing about entering the market, but it’s still very early days.”
Ripple often identify itself as a software solution company. Through their custom RTXP network, businesses can benefit from their scalable, instantaneous and reliable network. As it is, Ripple Network can fulfill three functions simultaneously. It can be a cross border payment channel, a foreign exchange platform and a liquidity provider. Liquidity is possible because of their native token, XRP.
As such, it’s no wonder that Ripple continues to spread its tentacles in the Asia Pacific. Ripple remains bullish and are relentless in their adoption drive. In fact popular payment providers in India, Japan and Thailand are live, using Ripple to settle their payment.
LianLian, a household money transfer company in Hong Kong now uses Ripple. For expediency, they shall use the blockchain RTXP network to facilitate their eCommerce payment and settling their invoices in real time.