Modern digital payment solutions like Ripple and Stellar are being actively implemented in Malaysia, simplifying the remittance process and increasing financial accessibility for broad segments of the population.
Ripple's Role in International Remittances
Ripple (XRP) is known for its partnerships with over 100 banks worldwide, enabling seamless international transactions. The platform aims to eliminate intermediaries in the payment process, allowing for quick and cost-effective international transfers. By leveraging blockchain technology, Ripple ensures that transactions between banks are completed almost instantaneously, significantly reducing processing times and transaction costs.
Stellar and Financial Inclusion
Stellar (XLM) focuses on providing financial inclusion to underserved communities. Unlike Ripple, which works closely with banks, Stellar operates as a nonprofit organization aimed at reaching economically marginalized areas. The platform facilitates low-cost transactions and supports unbanked individuals, enabling peer-to-peer payments without the need for traditional banking infrastructure.
Real-World Application: Mobile Money and bKash
An important milestone for blockchain remittance services in Malaysia was the recent partnership between Malaysian remittance company Mobile Money and Bangladesh’s bKash, utilizing RippleNet for international payments. This collaboration facilitates remittances amounting to approximately $1.82 billion annually between the two countries. Through RippleNet, funds are transferred efficiently, enabling faster and cheaper transactions.
The adoption of Ripple and Stellar technologies in Malaysia underscores the growing acceptance of blockchain solutions in the financial sector. Both platforms contribute to the modernization of global payment infrastructure by enabling fast, reliable, and cost-effective transactions.
