MoneyGram is partnering with Ripple to get into the crypto game.
The money transfer company says the tie-up could help send funds more cheaply and quickly. And one journalist believes the third-largest cryptocurrency offers a benefit over the alternatives.
“Ripple doesn’t have miners,” Fortune writer Jeff John Roberts told Cheddar. “You’re not relying on someone to mine a new block, and pack in the transaction, so they can do it instantly.”
MoneyGram will test using Ripple’s XRP coin to send money over its payment network xRapid. The news helped Ripple rebound after an early morning sell-off, which was in response to South Korean officials saying they are planning to ban trading in crypto. Immediately after the announcement, the price surged about 15 percent.
Roberts said the deal is a moment of truth for Ripple, since many blockchain watchers doubted the coin can get financial institutions to use its system.
He says the value will continue to surge if it can also prove it will lower the cost of money transfers.
For full interview click here.