In a previous report, Ripple’s senior executives, including CEO Brad Garlinghouse and other Ripple representatives, held a secret meeting with the Central Bank of Brazil, led by its president Roberto Campos Neto, to work on “institutional matters.”
The meeting was conducted via a conference call with the participation of the crypto team and the central bank’s senior staff.
As both parties blocked reporters from covering the meeting, there’s no solid details being released about the talk. However, it is believed that the main purpose of this meeting is Ripple’s attempt to expand its adoption in Brazil’s market.
Now Brazil, Later Latin America
Brazil is currently the promising name in the remittance market and one of the most crypto-friendly countries in Latin America. Adopting this strategic move, Ripple is making a big step towards the goal of spreading across the continent, with the establishment of its first regional office in Sao Paulo in June 2019.
For Ripple, remittance markets are indeed a major interest, as it is meant to make cross-border XRP cryptocurrency settlements easier. Brazil’s cash flow is worth $2.5 billion, making the crypto-currency industry’s domestic market an attractive target.
With this in mind, in December last year, Luiz Antonio Sacco, the general director of Ripple, revealed the company’s ambition to form a strategic partnership with banking firms and other Brazilian institutions in 2020.
Ripple has so far developed partnerships through the blockchain-based RippleNet commercial banking network with at least three top financial institutions — Santander, Bradesco and Banco Rendimento.
Real Expansion, Wider Adoption
Previous collaborations with other banks in the country could be the motive behind the central bank’s decision to take into account Ripple’s payment system. The prominence of Ripple with major local banks in this field can easily be explained by the ability of its technologies to run on traditional networks, such as banks, rather than expelling them.
Another advantage of Ripple, interestingly comes from Neto, the bank chief. Unlike most central bank’s presidents, Neto has expressed support for blockchain technology and also outlined numerous existing problems within the traditional financial system.
In April, Ripple’s partner and investor, SBI Holdings, was set to announce its plan to add Ripple settlements to Japanese ATMs. Also recently recognized by the Consumer Financial Protection Bureau for its significant role in transmitting cross-border data, everything seems to be on the positive side, giving Ripple and XRP a big boost toward wider adoption.