Ripple update: Someone have a better idea on how XRapid integrated on Xcurrent works?
I think we all have an idea on how xcurrent in the latest version allow to use xrapid to convert currencies.
Lets say Bank A in USA wants to send $1,000,000 (dollars) to Bank B in Mexico and Bank B, bank B will receive that money in Mexican Pesos (MXN).
With XCurrent using exchange partners, lets say COINBASE (at some point) and Bitso in Mexico, COINBASE will convert dollars to XRP and Bitso XRP to MXN. So far looks easy, but we always talk about how XRP is so cheap to send money, what is causing me some noise to me is that exchanges always wants to get their cut of the business and that could be the factor that will complicate things.
Example Coinbase and Bitso get a fee to convert Digital to local currency around .005% of the total amount for regular users, lets be more positive about it and think that they have an agreement with Ripple for lower fees .0005.
If we calculate the amounts in fees for that 1 million dollars the first conversion from Dollar to XRP would be 1,000,000*.0005 = Tha is 500 dollars in fees for first conversion if Bitso get a similar fee it will be 500 additional dollars more. That is total of 1000 dlls in fees, that sounds like a lot to me, not sure how much would be for same amount using SWIFT.
Does anyone have an idea if fees using xcurrent are much less than that or of swift is much more expensive? Thanks in advance for sharing your knowledge with this community.
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
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