Spanish bank BBVA has executed a money transfer using Ripple`s blockchain technology to send money between Spain and Mexico. Spain`s second biggest
Spanish bank BBVA has executed a money transfer using Ripple`s blockchain technology to send money between Spain and Mexico.
Spain`s second biggest lender (after Bianco Santander) has reportedly performed the “first real-time implementation of an international money transfer using San Francisco-based Ripple`s new distributed ledger”.
It should be noted that international transfers are now taking up to four days to clear. The use of disruptive technologies or DLT could improve the customer experience in transactions that involve Latin America corridors, as BBVA wrote in a press release (available at: bbva.com).
“This pioneer initiative is a clear demonstration of how payment processes can be vastly improved through the implementation of emerging technologies. These improvements will benefit our clients’ transactionality.”, as Alicia Pertusa, head of Digital Transformation in Investment Banking at BBVA, commented.
However, there are also other benefits except for shorter clearing times. Clients, for example, will have access to much clearer information about the costs associated with the process and will be able to view the status of the payment at any time. This is possible because the cryptographic properties of Ripple`s blockchain network creates permanent records of operations. In this way, they can become easier to trace. Lastly, the use of integrated messaging and settlement allows the parties to access all the payment-related information.
“We are very excited that BBVA, one of the most tech-forward banks in the world, has joined the Ripple network to transform their cross-border payments.”, according to Marcus Treacher, Global Head of Strategic Accounts at Ripple.
“While others are content to merely experiment with blockchain, BBVA is working with us to move real money and in doing so, will establish the future new level of service for their customers.”, he added.
BBVA has expressed its interest in blockchain by joining the R3 banking blockchain consortium, the newly-founded Eterprise Ethereum Alliance and the Hyperledger Project, an open-source cross-industry blockchain initiative led by the Linux Foundation.