Connect with us

News

Ripple’s ODL product may not be adopted by Australian banks for some time: FlashFX’s exec

Namrata Shukla

Published

on

Source: Pixabay

Currently, there are five endpoints for ODL transactions in existence which include USD, PHP, AUD, MXN and EUR along with five corridors [USD-MXN, USD-PHP, AUD-PHP, AUD-USD, and EUR-USD]. However, there could be 20 ODL endpoints by the end of the year 2020, according to FlashFX’s Chief Enabling Officer, Nicolas Steiger.

FlashFX is the only licensed entity in Australia on RippleNet, currently sending money via the AUD-PHP and AUD-USD corridor. However, Steiger believed that the chances of ODL adoption by the Australian banks were slim due to lack of need and/or understanding, and not due to the regulatory issues. According to a report by @karstnDE, FlashFX expected transactions with 3-5 additional RippleNet members in Q1 and more in Q2 2020.

However, with the current state of the regulations, it is not possible to execute payments from RippleNet to local US rails. The report stated:

“Every ODL transaction “stops” with having USD available at Bitstamp. To distribute ODL payments into traditional local rails (e.g. bank accounts), an institution would need to be licensed for that in every US state.”

Steiger hoped that this issue will be resolved soon and claimed that FlashFX “will later in Q1 enable a new partner” to drive growth and flow in AUD-PHP.

Meanwhile, XRP/MXN corridor along with others marked an all-time high of 20.40 million on 17 February. XRP/AUD has been noting reduced liquidity compared to other indexes, and was at 3.37 million at press time, while its all-time high stood at 5.18 million.

Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *