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Ripple Partners with UAE Bank For Cross-Border Payments
Ricardo Martinez | Mar 02, 2020 | 15:00
In the latest Ripple partnership announcement, the cross-border payments startup has announced that National Bank of Fujairah PJSC (NBF) will be the latest to utilize RippleNet.
Another Day, Another Ripple partnership
National Bank of Fujairah PJSC (NBF), has just announced its partnership with Ripple and their plans to use RippleNet for cross-border remittance payments for Indian customers. The bank will be partnering with Indian bank Indus Ind Bank.
The partnership will allow NBF customers to utilize RippleNet’s cross-border payment system for a cheaper, more transparent way to send remittance payments to India. It will also facilitate faster and more traceable payments, offering an improved experience.
NBF, is a Shariah law compliant bank, which offers commercial and retail banking options for customers. They have 18 branches across the United Arab Emirates (UAE). NBF has a large Indian customer base.
NBF’s CEO, Vince Cook, spoke highly of the frictionless experience offered by leveraging digitization and blockchain tech. RippleNet will create a more efficient option for corporate clients to manage their finances.
Digitisation remains a key catalyst for change and as a customer-first bank, we understand the importance of leveraging blockchain technology to deliver seamless and frictionless experiences to our clients. RippleNet will enable us to stimulate an enhanced payment experience that will allow our corporate clients to manage their finances in a more efficient way. We will always look for the next best thing for our customers as part of our commitment of being the best financial partner for their business and personal needs.
Are partnership announcements relevant in 2020?
Taking a strategy from the 2017 ICO frenzy playbook, Ripple has announced yet another partnership. This leaves many investors wondering about what kind of positive impact the new partnership will have.
The announcement of partnerships was a huge driver for irrational token valuations during 2017’s bull run fuelled by ICO speculation. However, it has recently been revealed that Ripple’s much-lauded Moneygram partnership is mostly smoke and mirrors, in the same fashion.
Ripple announced its partnership with Moneygram amid much hype that Ripple and Moneygram were going to utilize blockchain to revolutionize cross-border payments. XRP investors have waited for Moneygram to create demand for XRP tokens to no avail.
The truth is that Moneygram is haemorrhaging money, and even though Ripple actually paid Moneygram 11 million to use Ripple tech, Moneygram still posted quarterly losses of 9 million.
This news has come to light just as Ripple CEO Brad Garlinghouse publicly admitted that Ripple would not be profitable without dumping XRP tokens on retail investors in order to generate profits for shareholders. This is a textbook case of misaligned incentives of blockchain tokens versus company equity.
XRP investors have expressed dissatisfaction with Ripple’s continued dumping of XRP, have threatened to fork the network, and even filed a class action lawsuit against the company. Is this latest partnership just more of the same kind of pump marketing?
Do you think Ripple partnerships hold any relevance anymore? Let us know in the comments below!
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