The National Commercial Bank is the latest financial addition to the RippleNet Blockchain Network.
The kingdom of Saudi Arabia (KSA), a huge market for remittance provider cause of its huge migrant worker population, now would be leveraging Ripple’s Blockchain Technology for instant payment. With the total user count crossing over 5 Million, the National Commercial Bank had the project with RippleNet to be aimed at providing near-instant payments with partner banks internationally.
RippleNet is the blockchain network with more than 100 financial firms which includes banks, payment providers, remittance operators who are leveraging the SWIFT-replacement platform for gross clearing and settlement of international transactions.
The bank would start its operations with the new system from North America and Asia, starting in Singapore, as announced by Ripple in an official announcement.
KSA is been viewed by ripple as a global stronghold as a remittance provider in the last decade. As per World Bank statistics, a total of 37 billion dollars was included as outward remittance in 2016 from the foreign worker population that exceeds over 10 million in 2018.
As Ripple states, “For SMEs and corporations that depend on NCB, more efficient and transparent remittances will provide stability and help them grow their business faster.”
The Saudi Arabian Monetary Authority (SAMA)– Default Saudi Arabian Bank- in February became the first central financial authority to join RippleNet. xCurrent was used by the central bank for a pilot project amongst regional banks.
Interestingly, Central banks of Saudi Arabia and UAE are currently in talks for creating a cryptocurrency for cross-border instant payments.