Vietnam and Iraq Prepare for Currency Revaluation with XRP Integration

Vietnam and Iraq are taking significant steps to integrate XRP into their banking systems, which could pave the way for potential currency revaluations. This article examines how the adoption of XRP technology could impact the Vietnamese dong and Iraqi dinar in the global financial system.

Vietnam Embraces XRP for Cross-Border Payments

SBI Shinsei Bank and SBI Remit, both users of the XRP Ledger, have announced a new customer referral partnership to enhance international money transfer services. This move strengthens XRP's position by demonstrating its real-world application in cross-border payments, particularly in the Asian market.

Key points about how this strengthens XRP:

• Increased adoption: When large financial institutions like SBI use XRP to connect with banks in Vietnam, it signifies active implementation in real-world scenarios, potentially encouraging other banks to adopt the technology.
• Showcasing potential: This partnership highlights XRP's ability to facilitate fast, low-cost transactions between different currencies, which can lead to increased adoption and potentially higher value for the XRP token itself.
• Validation of utility: Major banking institutions like SBI Japan using XRP validates its utility within the financial system.

Vietnam has been testing XRP for some time and already has its own stablecoin. The country's economy is the second-fastest growing in the world, behind only China. By integrating XRP into its banking system, Vietnam is preparing for a potential revaluation of the dong.

Iraq's Cross-Border Integration

Iraq has made several announcements regarding its international cross-border transactions:

1. Digital banking regulations: Iraq passed digital banking regulations in November, classifying their banking system as digital and connecting internationally.
2. Port connections: In September, Iraq completed connecting all its ports to the digital system.
3. Customs integration: A delegation from the International Road Transport Union (IRU) visited Iraq to establish the framework for the country's first cross-border transit under the International Road Transport (TIR) system.

These developments are significant for the Iraqi dinar as they represent Iraq's integration into the global financial system. By digitizing and connecting their banking system, ports, and customs, Iraq is preparing for potential revaluation of the dinar in the new digital asset banking system.

XRP as a Bridge Currency

XRP is designed to function as a bridge currency for international transactions, allowing for quicker and more cost-effective transfers between different fiat currencies. Here's how XRP strengthens cross-border transactions:

1. Lower costs: XRP reduces fees by acting as a bridge currency, allowing banks to exchange money directly without intermediaries.
2. Increased liquidity: Banks can use XRP as a bridge to quickly convert one currency to another, freeing up cash for other purposes.
3. Global reach: XRP can connect banks and payment systems worldwide, even in regions with less developed banking infrastructure.
4. Transparency and security: The XRP Ledger is a public, decentralized ledger, allowing banks to track transactions in real-time, ensuring accuracy and reducing the risk of errors or fraud.

Ripple's Integration with SWIFT

Ripple, the parent company of XRP, is now integrated into SWIFT through EastNets' PaymentSafe. This integration allows XRP to move seamlessly across the SWIFT network, potentially streamlining foreign currency exchange by enabling faster, more cost-effective cross-border transactions.

How it works:

1. Sending money: When a user wants to send money in one currency to another country, their bank converts the funds into XRP.
2. Transferring on Ripple Network: The XRP is then transferred across the Ripple Network to the recipient's bank directly.
3. Receiving money: The recipient's bank converts the XRP back into the desired local currency.

While Ripple has the potential to significantly improve cross-border payments, regulatory hurdles and adoption by major banks remain key challenges. Currently, Ripple is seen as a complementary system to SWIFT, potentially used for specific high-value or time-sensitive transactions.

Conclusion

The integration of XRP into the banking systems of Vietnam and Iraq represents a significant step towards potential currency revaluations. As these countries embrace digital asset technology and connect to the global financial system, their currencies may see increased value and stability. The partnership between Ripple and SWIFT further solidifies XRP's position as a bridge currency for international transactions, paving the way for a new era of digital asset banking.

Article created from: https://www.youtube.com/watch?v=T0YqWcS4Btw