BRICS could soon have a digital payment platform for executing transactions within their ecosystem. It consists of five countries, namely Brazil, Russia, India, China, and South Africa. BRICS Pay will facilitate seamless cross-border transactions and ensure that the unbanked population gets its due coverage. Ripple is one platform that has emerged as a potential player in this space.
Ripple would back the mechanism with its blockchain technology and native token, XRP. There is no official statement regarding Ripple’s involvement in BRICS Pay to solidify the partnership. Its global network with several financial institutions, such as SBI Holdings and HSBC, strengthens its involvement.
If true, then Ripple is likely to share at least three advantages with BRICS: faster settlement times, reduced transaction costs, and enhanced transparency.
The settlement time would be shorter in comparison to the traditional methods followed by financial institutions. Transaction costs will be lower since there are no intermediaries required to process a transaction. This benefit will extend not just to businesses but also to individuals. A practical application has shown results. Michael Arrington from Arrington Capital provided details, revealing that he completed a $50 million transaction in just 2 seconds and collected only 30 cents in fees.
Enhanced transparency pertains to improving traceability and reducing the risk of fraud. The potential of blockchain technology will be utilized to ensure that all transactions are recorded in a transparent and secure manner.
The increased utility of XRP is one advantage exclusive to Ripple. An integration with BRICS Pay will enhance its usage and value while making it a crucial player that bridges cross-border transactions and brings down prices. An official confirmation about the involvement of Ripple would also do the job of pulling the value of XRP from the pit.
The token was last seen exchanging hands at $0.4726, down by 3.09% in the last 24 hours and 2.96% in the last 7 days. While the 24-hour trading volume has gone up by 93.38%, there is a decline in its market cap of 3.09%.
Ripple will likely remain at the center for a while, given that Thailand has expressed interest in joining BRICS. This is important for two reasons: first, Thailand has submitted its application with BRICS, and second, it is willing to explore the adoption of Ripple’s native token. Thailand is primarily attempting to become a global hub for innovation and technological advancement. Joining BRICS is part of its global strategy to gain greater participation and balance relationships with major powers.
A hint about Ripple’s partnership with BRICS Pay has done a good job for the crypto venture. A confirmation by BRICS would take it to the next level. Its blockchain technology and native token could then see major global recognition with all the advantages it brings to the table.