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Two Japanese firms turn to Ripple (XRP) tech to power remittances

A subsidiary of SBI has partnered with a local firm to utilize Ripple for remittances.

Two Japanese firms turn to Ripple (XRP) tech to power remittances

SBI Remit, a subsidiary of Japanese financial and services conglomerate SBI, and Hamamatsu Iwata Credit Bank, a regional credit union, will soon use Ripple for powering remittance services.

The service is slated to start July 12 and will utilize the RippleNet, a proprietary distributed ledger technology with transaction times of two seconds and fees of a few cents.

โ€œOur mission is to provide financial services centered on remittances to foreign residents, and we use Ripple’s distributed ledger technology, which is characterized by speed of deposit and low fees,โ€ the firms said in a release yesterday.

Why Ripple?

The release pointed out the adverse effects (to business and financial services) from the ongoing coronavirus pandemic as a key reason for the Ripple onboarding.

โ€œImmigration restrictions continue due to the recent spread of the new coronavirus infection (COVID-19) worldwide, but the Japanese government is expected to gradually relax the immigration restrictions in view of the infection situation,โ€ the release read, adding:

โ€œTherefore, international remittance needs are expected to increase in the medium to long term.โ€

It further pointed out that in Shizuoka Prefecture, where the Hamamatsu Iwata Credit Bank is located, the manufacturing industry accounts for one-third of the prefecture’s total production value and employs many foreign workers, many of whom send back money to their home countries.

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