Ripple Labs Inc., the firm to which the XRP token is native, is allegedly looking to foray into the Chinese market as it tries to expands its business and services.
The Ripple VP of Strategic Accounts pertaining to the European Union, Jeremy Light recently stated:
“China is definitely of interest, it is definitely a target. China is definitely a country and region of interest.”
Ripple seems to already have begun it’s expansion work into the East Asian sector by collaborating with LianLian International, a financial services firm based in Hong Kong. The agreement was signed by the parties in February this year, and will enable secure, fast and, inexpensive cross-border payments between Hong Kong and mainland China through the use of Ripple’s services and financial network.
This new collaboration also means that the XRP token is going to be substantively used in the processing of overseas payments from Hong Kong to The US and Europe. Interestingly though, there are now reports as of yet of LianLian have started using Ripple’s products.
Transactions based on XRP are validated by centralised and regulated bodies like financial institutions and retail firms instead of singular individuals – this is essentially the main difference between XRP and other major digital currencies. Additionally, the XRP token is “pre-mined”. This means that unlike Bitcoin and several other coins, this one does not depend on the energy consuming procedure of mining, and its maximum supply was already created when it was first introduced to the market.
However, if Ripple is indeed looking for a first into the Chinese market the XRP token may not be the best weapon, since the Chinese government has kept crypto-trading banned. Chinese Yuan to BTC trades now makeup below 1% of the global volume of cryptocurrency trading, especially due the crackdowns in China.
As the virtual currency prices began peaking late last year, Chinese regulators began to more intensively scrutinize crypto-based projects because of the huge number of frauds and scams associated with them. China also banned ICOs last year.