Following the launch of RippleNet’s On-Demand Liquidity (ODL) with forex firm Travelex, Ripple’s XRP cryptocurrency will be utilized to support quick and affordable cross-border transactions in Brazil.
On August 18, the digital payment platform Ripple announced that the foreign exchange firm Travelex would use RippleNet’s ODL to enable cross-border payments between businesses using Ripple’s XRP coin. Additionally, it stated that Travelex Bank is the only bank given permission by Brazil’s central bank to do just foreign currency business.
Although other Latin American businesses like Banco Rendimento, Remessa Online, Frente Corretora, and Banco Topazio have already used RippleNet services, Ripple said that this is the first instance of a Latin American bank using ODL as a result of the Central Bank of Brazil’s permission.
With the intention of opening up more payment options in the area and with more use cases suited to company requirements, Travelex will initially permit these cross-border payments between Brazil and Mexico.
The development comes as the Brazilian government enacted its first “Bitcoin law” in April 2022, which aimed to establish a legal framework for the regulation of cryptocurrencies.
Brazil And CBDCS
Brazil is also launching its central bank’s digital currency (CBDC). Though the economist Fabio Araujo believes the CBDC would be able to halt bank runs and put other limits on citizens’ access to money, the decision has been controversial.
According to Ripple CEO Brad Garlinghouse, Brazil is a fantastic fit for the ODL due to the country’s adoption of a regulatory framework that is crypto-friendly and the surge in institutional interest in digital asset solutions.
Garlinghouse said that Travelex’s usage of the ODL service will significantly increase the efficiency of cross-border payments given that Brazil receives approximately $780 billion in payments each year.
